Financial Analysis - Airbus

Vincent F.

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Financial Analysis - Airbus

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financial analysis, Airbus, futur strategies, common size analysis, ratio calculations, Commercial Aircraft division group, Airbus Helicopters, civil market, European aircraft manufacturer, assets, vertical analysis, liabilities, Inventory turnover, operating cycle, liquidity, solvency, trend analysis, international scene, wto world trade organization

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Abstract

Airbus Group is the European leader in aeronautics, space and defense. The group was founded in 2000 following the merger of three companies of German, French and Spanish origin. It is present throughout the world and, along with the American Boeing, is positioned as one of the two leaders of commercial aviation. Airbus Group is also the world leader in helicopter production via Airbus Helicopters and the third-largest space systems manufacturer via Airbus Defense & Space. This division is also present in the defense and security systems, notably thanks to its 46% participation in the Eurofighter consortium. Since the restructuring plan put in place in 2014, the organization of the group has changed profoundly. The name EADS has been abandoned in favor of its most famous brand, Airbus. The military (Cassidian) and space activities (Astrium) have been grouped together in a single division, Airbus Defense & Space.
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Regarding the shareholding of the Airbus group, 11.1% are held by the French State and 11.1% are also held by the German State. The Spanish State holds 4.17%, which leaves 73.68% floating shares. As of December 31, 2018, 776,367,881 units were issued in total for the Airbus group. The market capitalization of the Airbus Group in the course of 2019 amounts to 92 billion euros.

Introduction
Common size analysis
Ratio calculations
Trend analysis
Future strategies for Airbus
Conclusion

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[...] Until a few years ago satellites were able to perform only one mission and were relatively heavy. The aerospace industry today manages to adapt to the demand by offering the possibility of having satellites capable of carrying out several missions and totally digitals in order to be able to handle them quickly and easily. To get ahead of its competitors, Airbus also brings the speed of execution with only 18 months to develop and produce a satellite OneSat. This is how Airbus today has six satellite orders for the year 2019. [...]

[...] N.J. (2019). Airbus Partners With SAS To Deliver Green Aircraft. 6 LPSOH)O\LQJ Retrieved on October from https://simpleflying.com/airbus-sas-green-aircraft/ Yahoo. (2019). [...]

[...] The spending on research & development in 2018 is higher than in 2017, which primarily reflects R&D activities on the A320 program, and it didn't lead to any decrease in margin ratios. Nevertheless, compared to its competitor Boeing, Airbus doesn't have a competitive advantage in its ability to make a profit. When it comes to return ratios, Airbus also shows a rising trend. Total assets have increased from 2016 to 2018, but its operating income and net income grew at a higher rate. [...]

[...] FOR LIABILITIES Horizontal Common-size analysis for liabilities (base year is 2015) YEAR Accounts Payable Long Term Debt Other long-term liabilities Common Stock Retained Earnings Total liabilities and stockholders' equity Vertical Common-size analysis for liabilities YEAR Accounts Payable Long Term Debt Other long-term liabilities Common Stock Retained Earnings Total liabilities and stockholders equity Explanations about the figures presented above, already discussed with Professor Jan Luijten. It is possible that the figures presented here are from 100%. Indeed, the Yahoo Finance website we used did not have all the data needed for all calculations. As a result, we still sought to calculate the evolution of categories such as retained earnings. Information such as Taxes payable or Deferred revenues is not shown. [...]

[...] The cash increase is a good sign for the company. But in 2018 the cash drop down to 126,13% horizontally speaking from 2017 to 2018). Meaning that clients have not paid their invoice and this increases clients' debts. This analysis shows that net receivables go up from 2015 to 2017 from 2015 to 2017). This increase can be explained by the increase in clients' debts. The analysis also reveals that in 2018, net receivables drop down to 77,16% from 2017 to 2018) which can mean that account receivables have decreased due to the creditors' payment. [...]

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