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To get a first impression about 4 - Airlines financial situation and performance, use the financial information integrated in the case to calculate liquidity ratios
To get a first impression about Airlines financial situation and performance, use the financial information integrated in the case to calculate liquidity ratios ie Accounts Receivable Turnover, Debt to Equity and Current Ratios profitability ratios ie ROE, ROA, Profit Margin, Share of Fuel Cost in Total Cost, Share of Aircraft Leases in Total Cost and solvency ratios ie Asset to Equity, Times Interest Earned Also, compare Airlines ratios to the industry ratios provided in the case. Identify and discuss any major differences. Try to analyse which risks may result from modifications to the balance sheet and income statement with respect to key figures for the auditor.
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