British Airways Case
Activity ratios are used to measure how effectively a business employs its resources. (Dave Hall et al, p394)
The asset turnover ratio measures the productivity of assets. It looks at how much turnover is generated by the assets employed in the business. (Dave Hall et al, p394) The Table 2 shows that the asset turnover of British Airways was 4 and Easy Jet was 1.3. It showed that the asset turnover of British Airways was greater than it of Easy Jet.
The stock turnover ratio measures how quickly a business uses or sells its stock. (Dave Hall et al, p395) We can see that the stock turnover of British Airways was over 51.5 times while it was none in Essay Jet.
The debt collection period is the average number of days it takes to collect debts from customers. (Dave Hall et al, p395) From the Table 2 we can see that there was a little difference between the two companies. The business preferred of Easy Jet was almost 48.2 days because it was shorter than British Airways which was about 56.8 days.
British airways is a very famous airline in the world. They provide global service for customers. It is easy to book a ticket in their website. Customers will have the best services when they choose British airways. Moreover, customers can find lowest price ticket in their website. (
Customers always like cheaper price. Easy Jet is a company for people who want to book cheap flights, hotels and car rental. There are many languages to choose in their website. For example, English, France and Nederlands. This is very helpful. Customers from all of world can easily understand and book what they want. (