ABSTRACT
To determine if mergers and acquisitions are significantly successful in the airline industry is the interest of this dissertation. It studied the key external factors influential to the success of Lufthansa www.lufthansa-usa.com.
The researcher made use of the descriptive quantitative method of research to gather data from the financial statements of Lufthansa. Subsequently, ratio analyses were done to reveal success or failure of the strategy by comparing current ratios, return on assets, return on equity, debt to total assets, total cost, firm value, market value, and DuPont Value before and after the mergers and acquisitions.
Results revealed that Lufthansa controlled financial risk with mergers and acquisitions productively. Generally, the airline company has excellent cash flow having excessively earned revenues over expenditures, performed well in terms of profits in its operations or retained income, controlled their total equity, is enjoying continuous increase in their total assets, established a credit reputation in the market, minimized liabilities annually, and awarded consistent increases in stockholders’ equity. Thus, Deutsche Lufthansa airline management strategies are effective. However, the company needs to enhance earning strategy to uplift income for further growth and development, and to maintain increase in profit margin
To determine if mergers and acquisitions are significantly successful in the airline industry is the interest of this dissertation. It studied the key external factors influential to the success of Lufthansa www.lufthansa-usa.com.
The researcher made use of the descriptive quantitative method of research to gather data from the financial statements of Lufthansa. Subsequently, ratio analyses were done to reveal success or failure of the strategy by comparing current ratios, return on assets, return on equity, debt to total assets, total cost, firm value, market value, and DuPont Value before and after the mergers and acquisitions.
Results revealed that Lufthansa controlled financial risk with mergers and acquisitions productively. Generally, the airline company has excellent cash flow having excessively earned revenues over expenditures, performed well in terms of profits in its operations or retained income, controlled their total equity, is enjoying continuous increase in their total assets, established a credit reputation in the market, minimized liabilities annually, and awarded consistent increases in stockholders’ equity. Thus, Deutsche Lufthansa airline management strategies are effective. However, the company needs to enhance earning strategy to uplift income for further growth and development, and to maintain increase in profit margin
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