Name: Ngô Vũ Minh Thư

Student ID: 2042219230

Class: K59CA-A
Financial Statement Analysis:
VietJet Aviation Joint Stock Company

I. Overview of VietJet Aviation Joint Stock Company:

VietJet Aviation Joint Stock Company trading as VietJet Air or Vietjet, is an international low-cost
airline which is based in Hanoi Noi Bai International Airport Viet Nam. The carrier began operating on
25-Dec-2011, after several delayed attempts, initially with 3 A320 aircraft to Ho Chi Minh City and Da
Nang. Morover, VietJet is the first airline in the region to own Airbus A321 NEO which is one of the
most modern aircraft in the world. VietJet had planned to utilise the AirAsia brand after receiving an
investment from the Malaysian LCC but went ahead with the VietJet brand after AirAsia was denied
regulatory approvals. The carrier operates services across Asia. In 2015, VietJet Air won “Asian Best
Low Cost Carrier” award.
II. Analysis of VietJet Air financial statements:( Data table 2017-2019)
A. Current Assets:
2017 2018 2019
1, Cash and cash equivalents 6.861.601.955.584 7.164.923.916.451 5.355.816.155.352
Cash 2.824.391.955.584 3.648.963.007.451 3.815.637.517.972
Cash equivalenta 4.037.210.000.000 3.515.960.000.000 1.540.178.637.380

2, Short-term financial investments 1.400.000.000 816.900.000.000 1.144.756.800.000

3, Short-term receivables 10.223.453.944.832 10.272.635.073.584 11.906.623.124.337

4, Inventories 267.181.519.500 468.729.305.585 747.898.679.837

5, Other short-term assets 315.006.563.734 356.105.529.935 445.495.545.999

Short-term prepayments 218.686.791.604 299.977.931.264 382.337.666.788
Value added tax deductibles 881.949.735 976.845.974 -
Taxes from the State budget 95.437.822.395 55.150.752.697 63.157.879.211

CURRENT ASSETS 17.668.643.983.650 19.079.292.916.555 19.600.590.305.525

B. Non-Current Assets:
2017 2018 2019
1, Long-term receivables 7.152.674.330.646 10.577.336.637.830 14.964.049.145.778
Long-term trade receivables 701.500.000.000 701.500.000.000 701.500.000.000
Other long-term receivables 6.451.174.330.646 9.875.836.637.830 14.262.549.145.778
2, Fixed assets 1.528.720.840.609 1.646.373.479.969 1.303.160.396.122
Tangible fixed assets 1.523.538.521.104 1.643.191.617.368 1.301.038.091.839
 Intangible assets 5.182.319.505 3.181.862.601 2.122.304.283
3, Long-term assets in progress 222.031.597.270 1.233.005.676.006 1.258.338.717.091
4, Long-term financial investments 68.424.629.818 68.424.629.818 224.973.206.218
Investments in associates 60.000.000.000 60.000.000.000 60.000.000.000
Equity investments in other entities 7.868.448.000 7.868.448.000 149.417.024.400
Held to maturity investments 556.181.8188 556.181.818 6.556.181.818
5, Other long-term assets 5.017.769.859.431 6.481.745.760.491 6.591.074.767.201

NON-CURRENT ASSETS 13.989.621.257.774 20.006.886.184.114 24.341.596.232.410

TOTAL ASSETS = Current assets + 31.658.265.241.424 39.086.179.100.669 43.942.186.537.935

Non-current assets
C. Liabilities:
2017 2018 2019
1, Current liabilities 13.911.511.198.702 14.940.720.495.496 22.741.438.510.945

2, Non-current liabilities 7.152.619.524.611 10.106.955.368.591 14.721.200.673.623

LIABILITIES 21.064.130.723.313 25.047.675.864.087 37.462.639.184.568

D. Equity
2017 2018 2019
1, Owners’s equity 10.594.134.518.111 14.038.503.236.582 6.479.547.353.367
Owners’s contributed capital 4.513.432.840.000 5.416.113.340.000
Share premium 245.949.492.805 245.949.492.805
Foreign exchange differences 23.916.098.372 119.103.575.688
Undistributed profit after tax 5.809.062.955.579 8.255.509.576.829
Non-controlling shareholder interests 1.773.131.355 1.827.251.260

TOTAL RESOURCES = Liabilities + 31.658.265.241.424 39.086.179.100.669 43.942.186.537.935

Equity

E. Items:
2017 2018 2019
Gross Profit 6.549.396.795.917 7.491.819.452.641 4.561.833.639.783
Operating Income 5.298.447.656.806 5.808 899.148.021 3.576.541.078.442
EBIT 5.302.638.877.099 5.815.929.109.755 3.868.503.073.470
Net Income 5.073.651.413.698 5.335.090.477.155 3.108.642.894.811
III. Analysis of financial ratio
1. Leverage Ratios:
2017 2018 2019
Total liabilities 21.064.130.723.313 25.047.675.864.087 37.462.639.184.568
Total assets 31.658.265.241.424 39.086.179.100.669 43.942.186.537.935
DEBT RATIO = Total liabilities / 66.5% 64% 85%
Total assets
Owners’s equity 10.594.134.518.111 14.038.503.236.582 6.479.547.353.367
SELF-FUNDED RATIO = Owners’s 33.5% 36% 14,7%
equity / Total assets
The debt ratio reflects the level of debt use of VietJet Air. Thereby, the ratio shows the debt burden a
company is facing. In 2017, this ratio is. 66.5%, means 66.5% of the company’s asset value is financed
from debt.
2. Liquidity Ratios:
CURRENT RATIO = Current assets / 1,27 1,28 0.86
Current liabilities
QUICK RATIO = (Current assets - 1,25 1,245 0,83
Inventories) / Current liabilities
3. Profitability Ratios:
Sales (Total revenues) 42.302.758.277.80 53.577.241.462.140 41.252.356.172.059
6
GROSS MARGIN = Gross Profit / Sales 0.15 0.14 0.11

OPERATING MARGIN = Operating 0.1252 0.1084 0.08

Income / Sales
EBIT MARGIN = EBIT / Sales 0.1253 0.1085 0.09

NET PROFIT MARGIN = Net Income / 0.119 0.09 0.075

Sales
4. Interest Coverage Ratios:
2017 2018 2019
EBIT/ Interest Coverage 22.31 22.58 11.00
5. Operating Return:
2017 2018 2019
Asset Turnover = Sale / Total Assets 1.34 1.37 0.94
Return on Equity (ROE) 0.47 0.38 0.47
Return on Asset (ROA) 0.16 0.14 0.07

=> As we can easily see in the table, there is a decrease in the gross margin through 3 years, from 0.15
to 0.11. The most dramatic reduction happened from 2018 to 2019, the gross margin went down from
0.14 to 0.11. This means that Vietjet Air had strived to slash the cost labor down or find ways to cut
down the cost of production through these years.
The operating margin of the company had went down substantially through this period ( from 0.13
to 0.09 ). As a result, the company had an increase in revenue and operating expense through these
years.