Question 1
Using the data from Extract A, calculate the difference in the gearing ratio for easyJet plc between 2019 and 2020. You should state the difference to two decimal places. You are advised to show your working.
(4)
Explain one effect on easyJet plc of the reduced capacity utilisation of its aircraft in 2020.
(4)
Assess, with reference to Porter’s five forces, whether the ‘bargaining power of buyers’ represents the most significant external influence on easyJet plc.
(10)
Assess whether the change in price of jet fuel between November 2015 and July 2018 may have affected easyJet plc’s management of its working capital.
(12)
EasyJet plc wishes to improve its profitability. To achieve this, easyJet plc is considering either purchasing a new fleet of electric and hydrogen powered aircraft or focusing on increasing its market share of the package holiday market.
Evaluate these two options and recommend which one is more suitable for easyJet plc to improve its profitability.
(20)