ANALYSE VIETJET AIR’S

FINANCIAL STATEMENT
IN 2020

#springroll
SPRING ROLLS MEMBERS
❖ Huỳnh Thị Phương Thảo
❖ Phan Trúc Hân
❖ Phạm Thị Trúc My
❖ Đinh Quốc Văn
❖ Đoàn Phan Ngọc Bích
TABLE OF CONTENTS

01 INTRODUCTION 02 ABOUT
COMPANY

03 ANALYSIS 04 COMPARE &

CONCLUSION
INTRODUCTION
FINANCIAL
STATEMENT
● Financial statement analysis is the
process of analyzing a company’
financial statements for decision
making purposes.
● The basis for financial statement
analysis include a balance sheet,
income statement, and cash flow
statement.
02
ABOUT
COMPANY
 197
domestic routes
IN VIETNAM AND THAILAND
International
routes
SEVERAL DESTINATIONS
 In late 2019

100 millions
Domestic and international guests
 Best Ultra Low-cost Airline

TOP 10 corporate governance companies on the stock exchange.

TOP 50 airlines for healthy financing and operation

The best airline business in Southeast Asia

03
ANALYSE
FINANCIAL
STATEMENT
 01 Income
statement

02 Balance
sheet
03 Cash flow
statement
1. Analyze income statement

➢ Net profit after tax

➢ Gross revenue and net revenue
➢ Gross profit
➢ Evaluate the company performance
Net profit after tax
● A company's profit or earnings after all tax and expenses have
been paid.
● It used to provide an indication of the profitability of a
company by after-tax profit margin.
● Net profit represents the number of sales dollars remaining
after deducting the following: All operating expenses, Interest,
Taxes, Preferred stock dividends (but not common stock
dividends).
 Net revenue
The amount of sales after deducting some deductions

Gross revenue
The total amount of sales recognized for a reporting
period before deducting all expenses
● Gross revenue figure shows
businesses’ ability to
generate sales and potential
for growth.
● Gross revenue demonstrates
a company’s value to
external stakeholders.
● Gross revenue and net
revenue are often used to
assess a company’s financial
health. These metrics are
best used together.
 Gross profit
This section shows the profit of company after
subtracting the direct cost of earning that commonly
named cost of good sold (COGS) or the cost associated
with providing its services from revenue (sales)
 GROSS PROFIT

Most Great
important benefits to
measure businesses

Important Build
factor for business
investment strategies
Evaluate the
company
performance
Evaluate the company performance

● In general, Vietjet Air revenue in 2020 is 18,220 billion

VNĐ, while the common-base revenue is thus 0,36. It
can show that the revenue of Vietjet Air in 2020
decrease about 64% compared to this company's
revenue in 2019 (50,602 billion VND).
Evaluate the company performance

● It is worth noting that net profit after tax in 2020

is 68,665 billion VND, a very strong increase of
about 94.46% compared to 2019 (3,807 billion
VND).
Evaluate the company performance

● The cost of goods sold and service render of Vietjet

Air in 2020 is VND 19,632 billion, down more than half
(56.35%) compared to the cost of 2019. However, in
2020, Vietjet Air has a gross loss of about 1,411 billion
VND (due to the impact of the Covid-19 epidemic). In
2019, although the cost is larger than in 2020, Vietjet
Air has a profit of about 5,622 billion VND.
Evaluate the company performance

● Despite the complicated situation of the

Covid-19 epidemic, Vietjet Air's profit after tax
in 2020 is much higher (about 94.46%) than its
profit after tax in 2019.
➢ Conclusion: 2020 is a year full of difficulties and challenges for the
global economy, including the aviation industry. But with the
high determination of the entire team, Vietjet has overcome the
pandemic spectacularly with an increase (about 94.46%) of profit
after tax. In addition, Vietjet air has good control in costs. Overall,
they are improving significantly in company performance.
 2. Analyze balance sheet

➢ Total asset
➢ Liabilities
➢ Cash & cash equivalents
➢ Evaluate the company performance
 TOTAL ASSETS

Conclusion: The decline in total assets implies that the business is not
replacing its capital assets, which can indicate a cash crunch and,
ultimately, a long-term revenue loss. This situation happened maybe due to
the impact of the pandemic.
Liabilities
● The liabilities of Vietjet in the 2020 compared to the year of
2019 decreased by 12.4%.
● The major reason for the reduction in liabilities is long-term
liabilities, accounting for 29.8%.
● Short-term liabilities showed a minor increase of roughly 3.5%
Cash and cash equivalents
Evaluate the
company
performance
 The company performance
● Overall, the debt ratio of Vietjet in both year 2019 and 2020
smaller than 1.0 (100%)
● The current ratio of Vietjet Company in 2019 and 2020 went up
from 1.02 to 1.03.
● Current ratio raised from 1.02 to 1.03.
● The fall in ROA (from 7.1% to 3.7%) and ROE (20.9% to 9.7%)
indicates that a business has made poor investments
 CONCLUSION
The economic growth of Vietjet Aviation Joint Stock Company from 2019 to
2020 is decreasing. Cash and cash equivalents declined, indicating that the
company experienced more cash outflows than cash inflows. This occurred
in the context of the pandemic, and all flights were canceled. However, the
company's capacity to service debt is strong. The firm has strong debt
solvency and control
Analyze
cash flow statement
Cash flows from investing activities
IN 2020

1.105B VND
The company had positive net cash flows from
investing activities
Cash was received by

LIQUIDATION OF FIXED
ASSETS

BOUGHT CORPORATE BONDS AND

PAY FOR TERM DEPOSITS

COLLECTED INTEREST ON
DEPOSITS, LOANS AND
DIVIDENDS
Cash from investing activities is

5 TIMES
more than investing money
 In conclusion
The company has a net cash flow from
investment activities in 2020 that is nearly
VND 1900 billion smaller than in 2019.
Cash flows from financing activities
 NEGATIVE CASH FLOW

335B VND
Cash for financing activities

BORROWING BOND ISSUANCE

REPAY THE LOAN PRINCIPAL

Conclusion:
In general, the company's cash flow is generated mainly by borrowings and
bonds. Our point of view with that company, we completely agree with the
company's development strategy. Cash flow is regenerated continuously to
serve financial and investment activities, helping to increase the amount of
short-term as well as long-term assets, stocks and bonds on the stock
exchange. This will reduce the amount of cash to increase the value of the
company on the stock, which all companies that issue bonds and shares apply
NOTES to the consolidated
financial statements

TIMES INTEREST EARNED RATIO

RETURN ON EQUITY & RETURN ON ASSETS
TIE
ROE & ROA
Accounting standards in
financial statement note
The Important of High-Quality
Accounting Standards

Accounting Standards have close relationship with the quality

of financial picture, investors confidence and so on. The higher
the quality of Accounting Standards, the more confidence of
investors in capital market and the less capital costs they incur.
VIETNAM ACCOUNTING STANDARDS
Unlike the International Financial Reporting Standards (IFRS), the
standard-setting body of the VAS is the Ministry of Finance (MOF).
Vietnam’s government currently has

26 VAS based primarily on the ifrs but with certain customizations to fit

vietnam’s circumstances.
Two Important VAS
that Investors should Pay Attention to

VAS 18. Provisions, Asset and

Neptuneand Other Incomes
VAS 14. Revenues Mars
Contingent Liabilities
- Purpose
Neptune is the Despite being red,
farthest planet from - Purpose Mars is a cold
- Knowing Transaction
the Sun - Principle of recognition
place, not hot
- Principle of recognition
- Provisions and contingent liabilities
- Why investors should pay intention
- Why investors should pay intention to
to this item?
this item?
Compare to
competitor’s company
Competitor:

Vietnam Airlines (HVN)

 Why we choose Vietnam Airlines as VietJet Air’s competitor?

Vietnam Airlines currently holds 33.3% of the market, in which

Jetstar is a low-cost airline of Vietnam Airlines that plays the role of
low-cost competition with Vietjet Air accounting for 10.6%.
COMPARING FINANCIAL STATEMENT OF VJC AND HVN

(In VND billion)

Net revenue: of VJC was 18.220 in 2020 compared with 40.538 of HVN, respectively.
Due to the impact of the Covid-19 epidemic, both businesses experienced a decrease
in revenue compared to 2019, VJC decreased by 64% and HVN decreased by 58.7%.
However, net revenue of HVN had a slightly less of 5.3% compared to VJC.

Profit before and after tax: Profit before tax of VJC and HVN were recorded as -224
and -10.960 billion VND, respectively. Similarly, profit after tax of VJC and HVN were
recorded as 69 and -11.178 billion VND. Although HVN's net revenue is higher, VJC's
profit before and after tax shows a better result than HVN’s performance, especially
VJC still has 69 billion dong in after-tax profit compared to HVN which experienced a
loss of 11.178 billions dong in profit after tax.
ROS: which shows how much profit will be generated by 1 dollar (VND in this case) of net
revenue (in percentage). The higher the ROS, the greater the company's profit. ROS of VJC
and HVN are 0.38% and -27.0%. Although net revenue of VJC was lower than that of HVN,
its ROS was higher than HVN -27.38%. This indicates that VJC have competitive advantage
in cost management. In other word, VJC generates more profit than HVN with less sale
expenses. Furthermore, keeping the ROS non-negative during the pandemic also proves that
the business is doing well on optimizing costs. Reducing costs in a business is a concern of
many owners. If any business can do this, it is certainly a good environment worth investing in.

ROA: shows how much profit is generated for dollars of current assets of the company. In the
financial statements of two company, calculating VJC’s ROA and ROE are 0,15% and 0,46%
respectively. HVN of ROA, -16,1% and -90,6% of ROE, respectively. We can deduce that VJC
has more sustainable competitive advantage than HVN, due to its higher ROE.
 Liability and Owners’ Equity

(In VND billion)

From the above table, we can see that there is a large gap between VJC and HVN
owners’ equity, 14.978 and 6.072 respectively. This may also prove that VJC has the
ability to call for more investment than HVN.
 TOTAL DEBT-TO-ASSET AND DEBT-TO-EQUITY

The higher the ratio, the higher the degree of leverage and, consequently, the
higher the risk of investing in that company. In this case, the ratio for VJC’s total
debt-to-asset is 0,67, for HVN is 0,9. And the ratio for VJC’s debt-to-equity is 2.02,
for HVN is 9.3 shows that the risk level of investing in HVN is higher than VCJ,
since HVN asset rely more on liabilities. Companies with high debt-to-asset ratios
can be at risk, especially if interest rates are on the rise.
 EPS

EPS measures the amount of a company’s profit on a per-share basis. Beside, EPS is
always accompanied by P/E ratio. The price-to-earnings ratio is the ratio for valuing
a company that measures its current share.

EPS of VJC and HVN, they are recorded as 130.94 and -6,093.32 VND at the time
2020, respectively. In simple way, we can choose the company that has bigger price,
it definitely is VJC.
CONCLUSION
After analysing some special items from financial
statements of two stock codes VJC and HVN, we can
draw a conclusion that investing in VJC will get more
profit than HVN.

However, as the leading position and scale as well as

the very good ROS, ROE and ROA ratio of VietNam
Airlines in the years before the Covid-19 epidemic,
although there was a higher risk due to high
debt-to-asset, but everything has its price, high
profit comes great risk.
 THANK YOU
FOR LISTENING!