Consolidated Balance Sheet At March 31

€M €M €M
Non-current assets Note 2023 2022 2021
Property, plant and equipment 2 9,908.90 9,095.10 8,361.10
Right of use assets 3 209.1 133.7 188.2
Intangible assets 4 146.4 146.4 146.4
Derivative financial instruments 11 54.6 185.1 111.3
Other assets 6 168.9 72.1 48.7
Deferred tax 12 6.6 42.3 14
Total non-current assets 10,494.50 9,674.70 8,869.70
Current assets
Inventories 5 6 4.3 3.6
Other assets 6 878.6 401.1 179.8
Trade receivables 7 & 11 59.7 43.5 18.6
Derivative financial instruments 11 292.1 1,400.40 106
Restricted cash 8 & 11 19.5 22.7 34.1
Financial assets: cash > 3 months 11 1,056.20 934.1 465.5
Cash and cash equivalents 11 3,599.30 2,669.00 2,650.70
Total current assets 5,911.40 5,475.10 3,458.30
Total assets 16,405.90 15,149.80 12,328.00
Current liabilities
Provisions 13 19.8 9.2 10.3
Trade payables 9 1,065.50 1,029.00 336
Accrued expenses and other liabilities 10 4,783.50 2,992.80 1,274.90
Current lease liability 3 43.2 56.9 52.5
Current maturities of debt 11 1,056.70 1,224.50 1,725.90
Current tax 12 66.3 47.7 48.1
Derivative financial instruments 11 386.6 38.6 79.2
Total current liabilities 7,421.60 5,398.70 3,526.90
Non-current liabilities
Provisions 13 154.5 94.1 47.4
Trade payables 9 49.2 179.9
Derivative financial instruments 11 11.2 6.4
Deferred tax 12 159.3 266.5 272.4
Non-current lease liability 3 163.1 81.4 130.6
Non-current maturities of debt 11 2,853.20 3,714.60 3,517.80
Total non-current liabilities 3,341.30 4,205.80 4,154.50
Shareholders’ equity
Issued share capital 14 6.9 6.8 6.7
Share premium account 14 1,379.90 1,328.20 1,161.60
Other undenominated capital 3.5 3.5 3.5
Retained earnings 4,180.00 2,880.90 3,232.30
Other reserves 15 72.7 1,325.90 242.5
Shareholders’ equity 5,643.00 5,545.30 4,646.60
Total liabilities and shareholders’ equity 16,405.90 15,149.80 12,328.00
Consolidated Income Statement Year ended March 31
€M €M €M
Operating revenues Note 2023 2022 2021
Scheduled revenues 16 6,930.30 2,652.50 1,036.00
Ancillary revenues 16 3,844.90 2,148.40 599.8
Total operating revenues 16 10,775.20 4,800.90 1,635.80
Operating expenses
Fuel and oil -4,025.70 -1,699.40 -542.6
Airport and handling charges -1,240.50 -813.4 -287.2
Staff costs 17 -1,191.40 -690.1 -472.2
Depreciation 2&3 -923.2 -719.4 -571
Route charges -903.7 -551.2 -187.3
Marketing, distribution and other -674.4 -411.3 -201.5
Maintenance, materials and repairs -373.7 -255.7 -206.7
Aircraft rentals — — -6.7
Total operating expenses -9,332.60 -5,140.50 -2,475.20
Operating profit/(loss) 1,442.60 -339.6 -839.4
Other (expense)/income
Finance expense 19 -76.8 -91.4 -297.1
Finance income 42.4 — 16
Foreign exchange gain 34.3 1.2 11.8
Total other (expense)/income 42.5 -90.2 -269.3
Profit/(loss) before tax 1,442.50 -429.8 -1,108.70
Tax (expense)/credit 12 -128.7 189 93.6
Profit/(loss) for the year – all attributable to equity holder 1,313.80 -240.8 -1,015.10
Common Size of Income Statement
Title
Operating revenues 2023 2022 2021 Trend Lines
Scheduled revenues 64.32% 55.25% 63.33%
Ancillary revenues 35.68% 44.75% 36.67%
Total operating revenues 100% 100% 100%
Operating expenses 0.00% 0.00% 0.00%
Fuel and oil -37.36% -35.40% -33.17%
Airport and handling charges -11.51% -16.94% -17.56%
Staff costs -11.06% -14.37% -28.87%
Depreciation -8.57% -14.98% -34.91%
Route charges -8.39% -11.48% -11.45%
Marketing, distribution and other -6.26% -8.57% -12.32%
Maintenance, materials and repairs -3.47% -5.33% -12.64%
Aircraft rentals - - -0.41%
Total operating expenses -86.61% -107.07% -151.31%
Operating profit/(loss) 13.39% -7.07% -51.31%
Other (expense)/income 0.00% 0.00% 0.00%
Finance expense -0.71% -1.90% -18.16%
Finance income 0.39% - 0.98%
Foreign exchange gain 0.32% 0.02% 0.72%
Total other (expense)/income 0.39% -1.88% -16.46%
Profit/(loss) before tax 13.39% -8.95% -67.78%
Tax (expense)/credit -1.19% 3.94% 5.72%
Profit/(loss) for the year – all attributable to equ 12.19% -5.02% -62.06%
Common Size of Balance Sheet
Title 2023 2022 2021 Trend
Property, plant and equipment 60.40% 60.03% 67.82%
Right of use assets 1.27% 0.88% 1.53%
Intangible assets 0.89% 0.97% 1.19%
Derivative financial instruments 0.33% 1.22% 0.90%
Other assets 1.03% 0.48% 0.40%
Deferred tax 0.04% 0.28% 0.11%
Total non-current assets 63.97% 63.86% 71.95%
Current assets
Inventories 0.04% 0.03% 0.03%
Other assets 5.36% 2.65% 1.46%
Trade receivables 0.36% 0.29% 0.15%
Derivative financial instruments 1.78% 9.24% 0.86%
Restricted cash 0.12% 0.15% 0.28%
Financial assets: cash > 3 months 6.44% 6.17% 3.78%
Cash and cash equivalents 21.94% 17.62% 21.50%
Total current assets 36.03% 36.14% 28.05%
Total assets 100% 100% 100%
Current liabilities
Provisions 0.12% 0.06% 0.08%
Trade payables 6.49% 6.79% 2.73%
Accrued expenses and other liabilities 29.16% 19.75% 10.34%
Current lease liability 0.26% 0.38% 0.43%
Current maturities of debt 6.44% 8.08% 14.00%
Current tax 0.40% 0.31% 0.39%
Derivative financial instruments 2.36% 0.25% 0.64%
Total current liabilities 45.24% 35.64% 28.61%
Non-current liabilities
Provisions 0.94% 0.62% 0.38%
Trade payables 0.00% 0.32% 1.46%
Derivative financial instruments 0.07% 0.00% 0.05%
Deferred tax 0.97% 1.76% 2.21%
Non-current lease liability 0.99% 0.54% 1.06%
Non-current maturities of debt 17.39% 24.52% 28.54%
Total non-current liabilities 20.37% 27.76% 33.70%
Shareholders’ equity
Issued share capital 0.04% 0.04% 0.05%
Share premium account 8.41% 8.77% 9.42%
Other undenominated capital 0.02% 0.02% 0.03%
Retained earnings 25.48% 19.02% 26.22%
Other reserves 0.44% 8.75% 1.97%
Shareholders’ equity 34.40% 36.60% 37.69%
Total liabilities and shareholders’ equity 100% 100% 100%
Task 1 Analysis
Common Size of Income Statement
•Ratios of Revenues including Scheduled Revenues, Ancillary Revenues are increasing year by year. Trend lines sho
•As compare to revenue, Operating espenses are not increasing as the revnue is increasing. It shows the negative r
•Depreciation expense of year on year on the fixed assets. Upward trend line is indicating there is continuously incr
•Keeping other assumptions constant, Other Income including (Finance Income) is decreasing that indicates there i
•These trend analysis shows that company is good enough to manage its profitability and increase its revenues des

Common Size of Balance Sheet

•According to trend analysis, PPE has decreased from 67% to 60% and it causes depreciation expense to increase.
•Companies non current assets are continuously decreasing from year to year, it is causes of depreciation charge ye
•Total Current Assets of company has been increasing since 2021 to 2023. It may cause liquidity ratios to increase a
•Overall Companies current liabilities is increasing that could be negative sign for the company. It is alarming situati

TASK 2
Competitive Advantages
•Effective cost management of operating expenses ( Fuel and oil, Airport and handling , staff costs ) are providing c
and very less affecting the profitability of business.
•High Profit and stable profitability structure is providing competitive edge as comparison with Industry benchmark
•According to diverse source of financing, including finance income is providing edge to the industry benchmark as
there is any loss incurred or company needs some urgent cash.
•Efficient tax planning and management is providing a plus point for competitive advantage for future.

Competitive Disadvantage
•Less liqudity position as comparison with industry is affecting the liquidity ratios of company and providing an com
•Due to high level of debt,there is decrease in shareholders equity that is negatively affecting the company.
•Retained earnings is stable from Year 2021 to 2023. It is showing that company is strictly following the policies but
creates negative impact om companies assets and interest of shareholders to the company.

Task 3
Following some initiatives are taken for 2024 for future plans.
Recruitment of Cabin Crew and Pilots: The focus is on early recruitment for the 2024 summer season. Over 13,000
2024 is the main goal. There have been over 13,000 applications for cabin crew; of those, 35% have already been h
The planned training period is November 2023–January 2024.
Improving Gatwick Airport Resilience: The goal is to persuade Gatwick Airport to increase the number of employee
delays. Air Traffic Control (ATC) staff shortages were a major factor in the delays, so communication with Gatwick w
passenger experiences.
Supporting Rolls-Royce's Hydrogen Engine Research: The goal of the partnership with Rolls-Royce is to advance the
progress has been made, and in November 2022, the world will witness the first-ever run of a modern hydrogen-po
continue, with plans to conduct flight testing later. This collaboration demonstrates a dedication to the developmen

Our overarching goal for the upcoming fiscal year is to maintain a flat cost per seat (fuel excluded) annually. In addi
achieve this through maintaining our focus on finding ways to reduce costs without sacrificing the quality of the ser
Given the details of Ryanair Group, Net Present Value method (NPV) would be most suitable as a capital budgeting
Long-term Viability: The net present value (NPV) of an investment considers the present value of all future cash flow
the investment's lifetime. For a company like Ryanair, which makes significant investments in technology, infrastruc
thorough analysis of the investments' long-term viability.
Time Value of Money: By applying a predefined discount rate to future cash flows, net present value (NPV) account
important for Ryanair because it lets them evaluate the return on investments made in expanding their routes, buy
opportunity cost of capital into consideration.
Objective Decision Making: NPV offers a transparent and impartial framework for evaluating alternative investment
on their potential to maximize shareholder wealth and support the company's long-term growth strategy by calcula

Task 4
Board Structure
Board Structure consists of Chairman, Executive Directors, Independent Directors and Non Executive Directors. Non
provide the board with outside oversight and experience.

Functions of Directors
The board of directors is in charge of monitoring the business's management and making choices on behalf of the c
selecting and supervising executive management, guaranteeing legal and regulatory compliance, managing financia
some of their primary responsibilities.

Issues Faced by Boards of Directors in the Airline Industry:

Operational Challenges: The financial performance and customer satisfaction of airlines can be affected by a range
maintenance issues, flight delays, and cancellations.

Financial Performance: Economic downturns, volatile fuel prices, and currency fluctuations can all have an impact o
and sound financial management techniques.

Tackling Issues Faced by the Board of Directors:

Strategic Planning: Created and carried out strategic plans to deal with market issues, improve competitiveness, an
initiated several steps like changing accounting policies for better financial performances and took certain measure
steps has helped to tackle issues of financial performance.
Board Diversity and Expertise: Ensured that the board is made up of a diverse group of people with pertinent exper
and governance.
g year by year. Trend lines shows the upward trend in the Year by year.
easing. It shows the negative relation between both of them which is a good sign.
ating there is continuously increasing fixed assets and firm is increasing the ratio.
creasing that indicates there is less income from other sources.
and increase its revenues despite of increasing in operating expense as well.

eciation expense to increase.

uses of depreciation charge year on year.
se liquidity ratios to increase and effect on solvency ratios as well.
company. It is alarming situation that company is 45% of its current liabiltiies.

g , staff costs ) are providing competitive edge over competitors as they are stable

rison with Industry benchmarks.

to the industry benchmark as it will be helping to cover the expenses in the future if

antage for future.

ompany and providing an competitive disadvantage to industry.

affecting the company.
rictly following the policies but it is decreasing earning per share of shareholders and it
mpany.

summer season. Over 13,000 applications for cabi Early hiring for the summer of
ose, 35% have already been hired, and more than 50% of the pilots have been hired.

ease the number of employees working in the control tower in order to better manage
ommunication with Gatwick was necessary to reduce disruptions and improve

h Rolls-Royce is to advance the technology of hydrogen combustion engines. A lot of

run of a modern hydrogen-powered aero engine. In FY24, ground testing will
dedication to the development of sustainable aviation fuel.

uel excluded) annually. In addition to larger initiatives like those listed, our goal is to
acrificing the quality of the services we provide through procurement and efficiency.
uitable as a capital budgeting method because of following.
nt value of all future cash flows, including income and expenses, over the course of
ments in technology, infrastructure, and aircraft, net present value (NPV) offers a

t present value (NPV) accounts for the time value of money. This is especially
in expanding their routes, buying new aircraft, or building new infrastructure by taking

luating alternative investment possibilities. Ryanair can prioritize investments based

erm growth strategy by calculating the net present value (NPV) of various projects.

d Non Executive Directors. Non-executive directors are independent people who

king choices on behalf of the company's owners. Establishing corporate strategy,

compliance, managing financial performance, and advancing shareholder interests are

es can be affected by a range of operational challenges, including labor disputes,

ations can all have an impact on revenue and profitability, necessitating cost-control

, improve competitiveness, and take advantage of expansion prospects.BOD had

nces and took certain measures to adjust the Solvency and Liquidity Ratios .These

of people with pertinent experience and knowledge in fields like finance, aviation, law,