Proceedings of 13th Asian Business Research Conference
26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1
A Comparative Study on Financial Positions of Turkish
Airline and Royal Dutch Airlines
Fehmi Karasioğlu* and Mukhtar Hassan Mohammed**
This article applies financial statement analysis and assesses the financial
performance of the studied companies. The objective is to evaluate the financial health
of the companies. It is through the process of financial analysis that the key performance
indicators, such as, liquidity, solvency, and profitability as well as the efficiency of
operations of a business entity will be ascertained. The data used in the study was
obtained from the annual reports of the studied companies mainly financial statements.
Financial statements were thoroughly investigated to analyze the financial performance
trend. The goal is achieved through implementation of different financial analyzing tools
and techniques, mainly financial ratio analysis, trend analysis and vertical analysis.
Furthermore, comparisons are made between companies; their past and expected
future development is analyzed and compared with the industry average.
From the common size analysis of balance sheet, Turkish airlines being one of the
fastest growing airline companies, have demonstrated quite good result of balance
sheet analysis. The company’s assets were increasing especially its fixed assets and
its shareholder’s equity also was increasing. In contrast, KLM balance sheet was
obviously worse. Having analyzed the companies’ income statements, THY’s revenue
was increasing through the analyzed period and it was reporting a profit regardless the
economic crisis and increase in fuel costs.
JEL Codes: M 41, M 48
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Selçuk university , Faculty of economic and administrative sciences, konya/turkey e-MAIL:
fehmi@selcuk.edu.tr
** Selcuk University , Mba