Financial Management

Seminar Paper – Financial Analysis

Ana Rainho – 70264

Warsaw, 10th December 2015

Table of Contents

Poland’s Macro Environment 3
Poland’s Stock Market Performance 3
Market Characteristics (Industry) 4
Rainbow Tours - Company Presentation 5
Rainbow Tours Shares Performance 6
Financial Performance of Rainbow Tours 6
Ratios Calculations for the year of 2014 7
Rainbow Tours vs Competitors 10
Recommendation of Buying/Selling Shares 12
References: 13

Poland’s Macro Environment
With a population of about 38 million, and a Gross National Income (per capita of $13,360 (2014, Atlas method), Poland has the largest economy in Central Europe. Since joining the EU in 2004, the country’s ambitions have been marked by the desire to fully catch up with the core of the EU in terms of economic development and living standards (Gross Domestic Product per capita currently stands at only 67% of the EU average) and to become one of the key participants in European debates.
Domestic demand increased by 3 percent and remained the main growth driver. Private consumption continued to benefit from higher real disposable incomes as a result of improved labor market conditions, relatively strong credit growth to households, and a boost from persistent consumer price declines. Investment was supported by solid corporate profits, growing confidence, record low interest rates, and final disbursements from the European Union’s previous financial perspective (budget).

Graph 1. Poland GDP from 2006 to 2014

Source: World Bank Group (got from Trading Economics)

Poland’s Stock Market Performance
Warsaw Stock Exchange is the most advanced market in the CEE region and one of the most dynamically growing markets in Europe. It is the leader in its region in terms of market capitalisation, trading value, number and type of traded instruments, as