Financial Analysis of Tui Travel Plc in the Year 2009

Financial analysis Assignment Title-Analysis of the annual report of HUI Travel Plc during the years 2009 amp;2008 INTRODUCTION The main aim of this assignment is to analyse the Annual report and Financial accounts of TUI Travel PLC and to compare the companies overall performance with its competitors (Thomas Cook Plc) of the years 2009and 2008 using the process called Ratio Analysis. Ratio analysis acts as powerful tool in analysing and interpreting the financial statements of a company. Ratios help as to find the relationship between different items appearing in the financial statements of a company. They are also used in examining various aspects of financial position and performance and are widely used for†¦show more content†¦ROCE is expressed in percentage and as follows: Operating profit /Share Capital+Reserves+Non current liabilities*100 (Atrill, McLaney 2010) For the year 2009 For the year 2008 0.91% - 3.96% (loss) The group has delivered a strong performance despite significant economic headwinds, with underlying profits up to 11% to  £443 million (2008- £398m).The biggest problem faced by the company to attain maximum operating profit is its separately disclosed items . For example TUI paid  £143m to achieve the synergy target set by the management and  £124 million to write down Boeing 747 planes handled by its brand Corse air. But the real cause for the company to reach the profit levels was the considerable decrease in the long term liabilities of the company. A decrease of around  £277m of the long term liabilities in the year 2009 compared to 2008. 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