European Proceedings Logo

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
< Back to article