Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz

This research is for analyzing the relationship between traditional ratios and profitability performance of Malaysian Airline Company: AirAsia Berhad. Airline industry is selected for this research due to the instability earning performance faced by them. The seco...

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Main Author:	Aziz, Hefa Abdul
Format:	Student Project
Language:	English
Published:	Faculty of Business Management 2017
Subjects:	Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure
Online Access:	http://ir.uitm.edu.my/id/eprint/23953/ http://ir.uitm.edu.my/id/eprint/23953/1/PPb_HEFA%20ABDUL%20AZIZ%20J%20BM%2017_5.pdf

id	uitm-23953
recordtype	eprints
spelling	uitm-239532019-05-30T07:57:12Z http://ir.uitm.edu.my/id/eprint/23953/ Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz Aziz, Hefa Abdul Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure This research is for analyzing the relationship between traditional ratios and profitability performance of Malaysian Airline Company: AirAsia Berhad. Airline industry is selected for this research due to the instability earning performance faced by them. The secondary data from Data Stream and published financial report of AirAsia Berhad are taken into consideration to form the financial analysis line. In this paper, quarterly samples of data are taken over 11 years is collected. A time series model is developed to evaluate a complex and statistically the relationship between traditional ratio and profitability performance for this airline company. The relationship between traditional ratio and profitability performance of Airline Company is evaluated based on some selected ratios: Operating Profit Margin (OPM), Net Profit Margin (NPM) and Return on Assets (ROA) are chosen as the profitability rates while Current Ratio (CR), Debt Ratio (DR), and Total Assets Turnover Rate (TATR) are chosen as a traditional financial ratio. Based on regression result, it shows that on the p-value for the F-test statistic denoted by “Prob(F-statistic)” among three dependent variables only Operating Profit Margin variable can reject the null hypothesis at 5% significance level. It indicates that at least one of the independent variables is useful in predicting Operating Profit Margin. Other than that, it can be conclude that only Current Ratio and Total Assets Turnover Rate should be retained in the Operating Profit Margin regression model and Debt Ratio can be dropped. In additional, the other regression model should be dropped because the independent variables are not useful in predicting Net Profit Margin variable and Return on Assets variable. Faculty of Business Management 2017 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/23953/1/PPb_HEFA%20ABDUL%20AZIZ%20J%20BM%2017_5.pdf Aziz, Hefa Abdul (2017) Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure
spellingShingle	Balance sheets. Financial statements. Including corporation reports. Financial reporting. Financial disclosure Aziz, Hefa Abdul Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
description	This research is for analyzing the relationship between traditional ratios and profitability performance of Malaysian Airline Company: AirAsia Berhad. Airline industry is selected for this research due to the instability earning performance faced by them. The secondary data from Data Stream and published financial report of AirAsia Berhad are taken into consideration to form the financial analysis line. In this paper, quarterly samples of data are taken over 11 years is collected. A time series model is developed to evaluate a complex and statistically the relationship between traditional ratio and profitability performance for this airline company. The relationship between traditional ratio and profitability performance of Airline Company is evaluated based on some selected ratios: Operating Profit Margin (OPM), Net Profit Margin (NPM) and Return on Assets (ROA) are chosen as the profitability rates while Current Ratio (CR), Debt Ratio (DR), and Total Assets Turnover Rate (TATR) are chosen as a traditional financial ratio. Based on regression result, it shows that on the p-value for the F-test statistic denoted by “Prob(F-statistic)” among three dependent variables only Operating Profit Margin variable can reject the null hypothesis at 5% significance level. It indicates that at least one of the independent variables is useful in predicting Operating Profit Margin. Other than that, it can be conclude that only Current Ratio and Total Assets Turnover Rate should be retained in the Operating Profit Margin regression model and Debt Ratio can be dropped. In additional, the other regression model should be dropped because the independent variables are not useful in predicting Net Profit Margin variable and Return on Assets variable.
format	Student Project
author	Aziz, Hefa Abdul
author_facet	Aziz, Hefa Abdul
author_sort	Aziz, Hefa Abdul
title	Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
title_short	Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
title_full	Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
title_fullStr	Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
title_full_unstemmed	Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz
title_sort	analyzing the relationship between traditional ratios and profitability: airasia berhad (2005-2015) / hefa abdul aziz
publisher	Faculty of Business Management
publishDate	2017
url	http://ir.uitm.edu.my/id/eprint/23953/ http://ir.uitm.edu.my/id/eprint/23953/1/PPb_HEFA%20ABDUL%20AZIZ%20J%20BM%2017_5.pdf
first_indexed	2023-09-18T23:11:40Z
last_indexed	2023-09-18T23:11:40Z
_version_	1777418843710291968

Analyzing the relationship between traditional ratios and profitability: Airasia Berhad (2005-2015) / Hefa Abdul Aziz

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