Group project Part 2
1. Financial statements analysis Lufthansa Group
2008 2009 2010 2011 2012 Trend
Average
for 5
years
Industry
average
a. Short-term solvency or liquidity ratios
Current Ratio 0,92 0,99 1,05 0,97 1,00 0,99 1,05
Quick Ratio 0,85 0,92 0,99 0,90 0,93 0,92 0,42
Cash Flow Liquidity
Ratio 0,74 0,76 0,91 0,69 0,82 0,79 –
Cash Ratio 0,18 0,13 0,11 0,09 0,15 0,13 –
b. Long-term solvency or financial leverage ratios
Debt to Equity 2,39 3,25 2,51 2,49 2,42 2,61 4,30
Debt Ratio (Debt to
Asset Ratio) 0,70 0,76 0,71 0,71 0,71 0,72 0,81
Equity Ratio (Equity
to Asset Ratio) 0,30 0,24 0,29 0,29 0,29 0,28 0,19
DSO 46,28 51,43 48,28 45,35 44,57 47,18 –
c. Asset management or turnover ratios
Fixed Asset Turnover 2,19 1,66 1,87 1,97 2,03 1,95 –
Total Asset Turnover 1,11 0,84 0,90 1,02 1,06 0,99 1,15
Inventory Turnover 23,67 19,66 22,21 26,99 28,08 24,12 24,11
Accounts Receivable
Turnover 7,89 7,10 7,56 8,05 8,19 7,76 21,69
2008 2009 2010 2011 2012 Trend
Average
for 5
years
Industry
average
d. Profitability Ratios
Gross Profit Margin 0,45 0,43 0,44 0,42 0,40 0,43 –
Operating Profit
Margin 0,05 0,01 0,05 0,03 0,04 0,04 –
Net Profit Margin 0,02 -0,01 0,04 0,00 0,03 0,02 0,03
Return of Assets
(ROA) 0,02 0,00 0,04 0,00 0,03 0,02 0,04
Return on Equity
(ROE) 0,08 -0,02 0,14 0,00 0,12 0,06 0,24
e. Marker Ratios
Share price at year–
end 14,24 9,19 16,36 11,75 11,19 12,55 –
Earnings Per Share 1,18 -0,24 2,47 -0,03 2,15 1,11 –
Price to Earnings
Ratio 12,03
–
37,58 6,62
–
413,91 5,20 7,95 15,8
Book Value Per Share 14,40 13,54 18,21 17,57 18,04 16,35 –
Market to Book Ratio 0,99 0,68 0,90 0,67 0,62 0,77 1
f . Du Pont model
ROE 0,082
–
0,018 0,136 -0,002 0,119 0,06 0,24
=Net profit/Sales 0,02 -0,01 0,04 0,00 0,03 0,02 –
=Sales/Assets 1,11 0,84 0,90 1,02 1,06 0,99 –
=Assets/Equity 3,40 4,26 3,52 3,49 3,42 3,62 –
=Net Profit/Equity 0,08 -0,02 0,14 0,00 0,12 0,06 –
Company`s debt to equity ratio fluctuated within relatively small range during last 5 years
which allows to make a safe conclusion that change in capital structure (or lack of one to be
exact) have not significantly affected company`s WACC.
h . Common size analysis
Balance Sheet
in €m 2008 2009 2010 2011 2012
Cash and Cash Equivalents 6,4% 4,3% 3,7% 3,2% 5,1%
Short Term Investments 9,1% 13,5% 16,3% 12,6% 13,2%
Total Accounts Receivable 14,1% 11,9% 11,9% 12,7% 12,9%
Inventories 2,6% 2,4% 2,3% 2,2% 2,2%
Other Current Assets 1,0% 0,8% 1,1% 3,1% 0,9%
Total Current Assets 33,2% 33,0% 35,3% 33,7% 34,3%
Total Investments and
Advances 9,1% 7,2% 7,5% 6,6% 4,3%
Long-Term Note Receivable 1,9% 1,8% 2,0% 2,1% 3,5%
Net Property,Plant,and
Equipment 50,7% 50,8% 48,3% 51,8% 52,1%
Goodwill and Other
Intangible Assets 4,8% 7,0% 6,5% 5,6% 5,5%
Total Fixed Assets 66,6% 66,8% 64,3% 66,1% 65,4%
Total Assets
100,0
%
100,0
%
100,0
%
100,0
%
100,0
%
ST Debt 2,1% 2,8% 3,3% 2,2% 3,4%
Accounts Payable 10,5% 9,7% 9,9% 10,0% 9,8%
Income Tax Payable 0,4% 0,5% 0,8% 0,3% 0,4%
Other Current Liabilities 22,8% 20,2% 19,5% 22,4% 20,8%
Total Current Liabilities 36,0% 33,3% 33,5% 34,9% 34,3%
LT Debt and Capital Lease
Obligation 14,1% 23,2% 21,2% 20,7% 20,9%
Provision for Risks &
Charges 12,0% 12,6% 10,9% 9,8% 9,4%
Deferred Taxes 3,0% 2,4% 1,1% 1,2% 0,7%
Other Liabilities 5,3% 5,0% 4,5% 4,8% 5,3%
Total Liabilities 70,4% 76,4% 71,3% 71,3% 70,6%
Accumulated Minority
Interest 0,3% 0,4% 0,3% 0,3% 0,2%
Common Equity 29,1% 23,1% 28,1% 28,3% 29,0%
Total equity 29,4% 23,5% 28,4% 28,6% 29,2%
Total Liabilities and Equity
100,0
%
100,0
%
100,0
%
100,0
%
100,0
%
Income statement
in €m 2008 2009 2010 2011 2012
Traffic revenue 80,4% 79,0% 81,1% 82,8% 82,3%
Other revenue 19,6% 21,0% 18,9% 17,2% 17,7%
Net Sales
100,0
%
100,0
%
100,0
%
100,0
%
100,0
%
Cost of materials and services -55,4% -57,0% -55,6% -58,2% -59,6%
Gross profit 44,6% 43,0% 44,4% 41,8% 40,4%
Changes in inventories and
work performed
by entity and capitalised 0,7% 1,0% 0,6% 0,5% 0,4%
Other operating income 7,9% 11,4% 9,9% 8,1% 9,2%
Staff costs -22,9% -26,9% -24,5% -23,2% -23,4%
Depreciation, amortisation and
impairment -5,2% -6,6% -6,3% -6,0% -6,1%
Other operating expenses -19,9% -20,6% -18,9% -18,4% -16,2%
Profit from operating