Allegiant Report Essay Example | Topics and Well Written Essays - 500 words

Allegiant Report - Essay ExampleIn 2007 the net margin (net income / sales) of the conjunction was 8.74%. Based on the company yearly growth prediction of an to a higher place 10% the company was not able to meet its profitability targets, but it still perform kick downstairs than the industry average of or so 2% (Bachman).One of the weaknesses of the companys growth strategy is that it does defer adequately against the risk of infection of higher fuel costs. In the article the readers of the material learned that the company use a fleet that was on the average 18 years old. The utilization of old inefficient planes wound the companys operating efficiency. A company that takes great pride in its ability of start out costs has an inherent and systematic deficiency in its cost structure. Gasoline represents the second largest costs for a typical airline after only the cost labor of the airplanes crews and administrative personnel. Another occupation risk of the company is its dependence on middle class as its primary business prospect. The firm is forgetting about the virtues of targeting business travelers. A higher retention rate of business clients could help the company create cheer over time.Ratio analysis is a financial diagnostic tool that go off help an business analyst determine the financial performance of a particular common stock or in camera owned business. In fiscal year 2007 the debt to equity ration of Allegiant was 0.93. The metric is good because the company has more total equity than total debt. In comparison with the industry standard of 1.48, the company has a more flexible capital structure that can be utilized in the future to commence capital and spur further growth (Dun & Bradstreet). The firms quick ratio (current assets / current obligations) is however better at 1.75. A low current ratio decreases the business risk for an investor because it provides assurances that the company can meet its current obligations. The compa ny most likely issue corporate paper at such as