Financial Benchmarking as an Airline Competitiveness Assessment Tool
Table 6:
| Group NN | Indicator (symbol) | Regulatory (recommended) values | |||
| Excellent (5) | Good (4) | Acceptable (3) | Non-acceptable (2) | ||
| Liquidity | |||||
| 1 | TL | >8.5-6.38 | 8.5-6.38 | 6.38-4.25 | <4.25 |
| QL | >4.1-3.08 | 4.1-3.08 | 3.08-2.05 | <2.05 | |
| AL | >0.14-0.10 | 0.14-0.10 | 0.10-0.05 | <0.05 | |
| Capital structure | |||||
| 2 | D/E | <0.23 | 0.23-0.28 | 0.28-0.33 | >0.33 |
| NWC/CA | >0.5-0.35 | 0.5-0.35 | 0.35-0.2 | <0.2 | |
| E/LTA | >0.75-0.64 | 0.75-0.64 | 0.64-0.53 | <0.53 | |
| Operating Performance or Profitability ratios | |||||
| 3 | ROA | > 0.072 | 0.0328 – 0.072 | 0.000 – 0.0328 | <= 0.000 |
| ROE | > 0.082 | 0.041 – 0.082 | 0.000 – 0.041 | <= 0.000 | |
| ROS | > 0.216 | 0.108 – 0.216 | 0.054 – 0.108 | <= 0.054 | |
| Assets usage ratios | |||||
| 4 | S/CA | >7.5 | 5.0 – 7.5 | 2.5 – 5.0 | <2.5 |
| S/DA | >4.5 | 3.0 – 4.5 | 1.5 – 3.0 | <1.5 | |
| S/E | >6.0 | 4.0 – 6.0 | 2.0 – 4.0 | <2.0 | |