JetBlue - Case Study Coursework Example | Topics and Well Written Essays - 4000 words

JetBlue - Case Study - Coursework ExampleTo analyze the strength and stability of the sales revenue enhancement earned by the corpo dimensionn all over the years, balance analysis will be useful. and then in this case study ratio analysis is applied for evaluating the increase in nett revenue in relation to increased in operation(p) expenses.Profitability reflects the final result of business operations. (Chandra, 77). In say to identify the profitability of a company, crying(a) profit ratio analysis and net profit ratio analysis have to be undertaken. The trend in the gross profit ratio of the company over the years shows that there is an increase in its gross profit.From a loss of about $21188000 in the starting time year of 2000, JetBlue earned a gross profit rate of 8.366 % in the next year itself. This shows that the company has a high potential to overcome its financial challenges. In the year 2002, the gross profit ratio had increased to 16.528%. The half year perfo rmance of JetBlue shows a gross profit ratio of 18.07%. But by and by that in the next half year there occurred a slight decline in gross profit ratio can be seen. It is 17.32 %. The gross profit rate graph of the company shows signs of earthshaking increase.Net profit ratio analysis of JetBlue further shows that the operating performance is considerably improving. In the initial year, the company has incurred operating loss of $ 21330000. In the next year, company earned net profit of $ 38537000. The net profit ratio in the year2001 is 12.027%. In 2002, it decreased to 8.64%. During the first half of 2003, it again increased to 9.76 % and in the next half year it further increased to 11.977%. Thus, the net profit ratio of JetBlue is not nominate to be stable in nature. The ratio analysis on sales revenue shows that there is variation in the net profit of the company over the past three years. This is due to higher operating costs resulting from increased interest expenses and i ncreased taxation charges.Financial risk can be mensural from operating