Performance against our Financial Framework

Reporting on the financial performance of the Qantas Group.


The Qantas Group aims to achieve top quartile Total Shareholder Returns (TSR) relative to the ASX100 and global airline peers. In line with this objective and the Group’s Financial Framework, we report on a number of metrics over time. Where appropriate, the Group reports on both the statutory and underlying metrics. Underlying Profit Before Tax is a non-statutory measure and is the primary reporting measure used by the chief operating decision making bodies for the purposes of assessing the financial performance of the Qantas Group.

Diagram flow of our financial chart

1. Based on current invested capital of ~$8.9b. 2. Weighted Average Cost of Capital, calculated on a pre-tax basis. 3. Target of 10% ROIC allows ROIC to be greater than pre-tax WACC through the cycle. 4. Earnings per Share. 5. Target Total Shareholder Returns within the top quartile of the ASX100 and global listed airline peer group as stated in the 2019 Annual Report, with reference to the 2019-2021 LTIP.

Net debt

The Group has significantly strengthened the balance sheet and reduced net debt. In FY19 net debt decreased to $4.7 billion, providing significant financial flexibility.

net debt profile

Net debt includes on balance sheet debt and aircraft operating lease liabilities under the Group’s Financial Framework.

Group Return on Invested Capital

Return on Invested Capital (ROIC) is the primary financial return measure for the Group. Our target is to achieve ROIC greater than our Weighted Average Cost of Capital (WACC) through the cycle. Our threshold of 10 per cent ROIC allows ROIC to be greater than pre-tax WACC through the cycle. Since our turnaround in 2015, the Group has been consistently delivering ROIC well in excess of this threshold.

group return on invested capital

Calculated as ROIC EBIT for the 12 months to 30 June, divided by 12 months average Invested Capital.

Net free cash flow

Targeting an optimal capital structure and measuring ROIC performance provides a platform for making disciplined decisions regarding shareholder distributions, reinvestment in our business and net debt reduction. We will invest prudently in capital expenditure from operating cash flow to increase future returns, with surplus capital returned to shareholders. 

Net free cash flow table

Net Free Cash Flow is net cash from operating activities less net cash used in investing activities (excluding aircraft operating lease refinancing).

Shareholder returns

Since FY15 the Group has generated significant net free cash flow while investing in the business and reducing debt. More than $3.6 billion of capital has been returned to shareholders through a combination of dividends and share buy-backs that reduced the issued capital by around 28 per cent.

In August 2019 the Group announced a dividend totalling $204 million, or 13 cents per share and an off market buy-back of up to 79.7 million shares or $396 million.

Shareholder returns graph

Subject to completion of announced off-market buy-back of approximately 400 million.

Earnings per share

The Group tracks Earnings Per Share (EPS) on a statutory basis, which more than doubled between FY15 and FY19.

earnings per share

Underlying Earnings Per Share calculated as Underlying Profit Before Tax expense less tax expense (based on the Group's effective tax rate for the period) divided by weighted average number of shares during the year.

See further details on the Group’s history of capital managementOpens external site in a new window.


Refer to the Review of Operations section in the Qantas Annual Report 2019Opens external site in a new window for definitions and explanations of non–statutory measures. Unless otherwise stated, amounts are reported on an underlying basis.