Ryanair Finances - the facts
There has been a lot of pure speculation on this thread about Ryanair's cash pile, the possibility of asset stripping it, etc.
I thought I would go and find some facts. Here they are:
Market capitalisation EUR 3.4 bn - as at 17/10/08
Cash EUR 1.4 bn - as at 31/3/08
HOWEVER, borrowings EUR 1.8 bn - as at 31/3/08
(the company is highly geared, not cash rich at all overall).
Net assets per share EUR 1.67 as at 31/3/08 (likely to be lower now)
Share price EUR 2.31 as at 17/10/08
So RYA is still trading well above the value of its assets and as some of those assets are likely to be aircraft, they are probably not worth as much today as they are valued at on the books.
Also, some of that cash in the bank is only there in the form of a "loan" from its customers. Like most retail businesses, Ryanair benefits from the fact that customers pay up front, yet the company gets credit from many of its suppliers, often 30 days. This means it should always be sitting on at least 30 days' worth of its customers' cash.
Last edited by marchino61; 18th October 2008 at 04:24.
Reason: Typo