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Ryanair PLC is a limited company involved in air transport ventures on a global scale. For the year ended March 31, 2009, it achieved revenues in the excess of €2,942M. Similarly, AerLingus PLC engages in air transport with a global presence. As observed from the financial records of the organization, its operating revenues topped €1,357.4 M in the year ended December 31, 2008. Both companies have registered locations in Ireland and have in the past excelled in the air aviation industry.

Balance Sheet Summary

A company’s balance sheet displays the net worth of an entity. From the balance sheet, the stakeholders are able to discern the financial strength of the entity by comparing the components of the balance sheet to various benchmarks. As observed from appendix 1, the current asset of Ryanair PLC topped €1,583,194,000 as compared to AerLingus PLC’s, with a current-asset portfolio of €1,076,817,000. Ryanair had total of €4,804,668,000 in non-current assets whereas AerLingus PLC boasts of non-current assets amounting to €1,007,666,000 as at the end of the accounting period.

As equity-based companies, Ryanair PLC and AerLingus Ltd. have shareholders equity of €2,425,061,000 and €772,695,000 respectively. Current and long-term obligations are also part of the capital structure of both firms. From the financial reports, the current and non-current assets of Ryanair PLC amounted to €1,565,361,000 and €2,398,440,000 respectively. AerLingus Ltd. had short-term obligations of €519,593,000 and long-term obligations totaling €2,398,440,000 by the end of the period under observation.

Company Information

Revenues from traveling passengers form the major portion of revenues for the transport industry. However, in addition to passengers, both airlines engage in luggage and courier services. Ryanair Ltd. experienced a 15% increase in passenger volume to 56 million during the period 2008 and 2009 while AerLingus Ltd. reported a 7.5 % increase to 10 million over the period considered. The increase in passenger volumes translated to increased revenues for both airlines over the same period. According to the financial records of both airlines, increased revenues were a direct result of increased occupancy. Similarly, both airlines increased the fleet of aircrafts in a move to improve customer satisfaction. As postulated in appendix 2, both airlines had sufficient cash balances posted in their balance sheets, which represented financial strength.

According to the financial records for the year ended March 31, 2009, Ryanair PLC increased its long-term debt obligations from €2.266495B to €2.398440B due to proposed expansion plans. On the other hand, AerLingus PLC magnified their long-term obligations from €333.3M to €447.92M as observed from the financial records for the period ended December 31, 2008. The directors of Ryanair PLC presented the signed records on July 30, 2009, while for AerLingus Ltd., the management signed the signed the financial records on April 27, 2009. The financial records also portray that KPMG audited and certified the accounts of Ryanair Ltd’s accounts while the appointed auditor for AerLingus PLC during the period ended March 31, 2008 was Price Water House Coopers.

Market capitalization

As a factor of company valuation, the level of market capitalization represents the total value of the company’s tradable stocks. It displays the worth of outstanding shares of a public limited company. As posted on the Irish Stock Exchange, both limited companies referred to above had actively trading stocks on the exchange. Ryanair Ltd. experienced an increase in market capitalization with AerLingus Ltd. losing ground on the same on the two occasions considered.


Appendix 1

Appendix 2

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