Liquidity Ratios:

1) Current ratio:
The current ratios for peers are less than the industry standard which
itself is less than one, except that for interglobe aviation. Spicejet has the
least current ratio among its peers indicating a negative net working
capital. The contributing factor behind the high current liability are Trade
Payables & Other liabilities. On further analysis of trade payable, it is
found that delayed ATF payments & Airport charges are the driving
factors. Other liabilities has Unearned revenue which constituents almost
20% of the current liabilities is the another driving factor of low current
ratio. But since it is normal to have high unearned revenue in airline
industry the numbers for this particular factor is justified.
2) Quick ratio:
The quick ratios for peers are less than the industry standard, except
that for Interglobe Aviation. The reason being, liquidity crunch. Spicejet
has the least quick ratio among its peers indicating that the company
doesnt have enough cash at its disposal to meet the liquidity
requirements. One of the reasons behind this is high trade payables as the
company has not long list of creditors who are yet to be paid & also short
term loans & advances(Rs. 4138 Mn) which was considered in current
asset for CR & excluded for QR.
Profitability Ratios:
3) Return on Equity:
The industry average consists of only one RoE from interglobe aviation
as for other players the net income is negative so RoE becomes a
useless tool. For Spicejet as net income has been negative since last 4
years so as the reserves, the investors have actually lost money.
4) Return on Capital Employed:
The industry average consists of only one RoCE as other players along
with Spicejet have shown negative operating income in FY15.
5) Operating profit margin:
Because of persistent negative operating profit due to high operating
expenses (fuel purchase, airport charges, employee cost), Spicejet has
a negative operating profit margin and thus very less than the industry
standards for FY15. To be more precise ATF expense which is around
50% & airport charges which is around 15-20% of the total operating
expenses are the main rationales behind the high operating expenses.
6) Net profit margin:
The bottom-line has been the problem for the major players in the
industry except for Interglobe Aviation as it has managed to maintain
positive earnings for FY15. For Spicejet and others the net profit is
negative and hence it has bought the industry average down and into
the negative territory.
7) Net Working Capital:

Due to high accounts payables and less cash at the disposal, for
Spicejet, the working capital is negative and that too big. This indicates
a liquidity stress in the company. Having said that, it is above the
industry standards as working capital for JetAirways is pulling the
industry average down.
8) Return on Assets:
Due to negative earnings, the RoA for the industry is negative though
Interglobe Aviation has given positive returns on assets for FY15.
9) Fixed Charge Coverage Ratio
The industry