GROUP ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student name: Nguyen Thi Ha Anh Student ID number: 22180071

Student name: Ho Hoang Viet Linh Student ID number: 22180052

Student name: Vu Tuyet Ngan Student ID number: 22180062

Student name: Nguyen Thi Phuong Thao Student ID number: 22180045

Student name: Tran Quoc Tien Student ID number: 22180036

UNIT AND TUTORIAL DETAILS

Unit name: Business Accounting Unit number:

Tutorial/Lecture: Class day and time:
Lecturer or Tutor name: Prof. Chor Ghee Lim and Dr. Nguyen Nguyen
ASSIGNMENT DETAILS

Title: Analying finance information of Vietnam Airline and Vietjet Air from 2015-2017
Length: 26 pages Due date: 31 Dec 2018 Date submitted: 31 Dec 2018

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Table of Contents

1 Introduction ............................................................................................................. 1

1.1 Vietnam Airlines ............................................................................................. 1

1.2 Vietjet Air........................................................................................................ 1

2 Financial analysis .................................................................................................... 2

2.1 Market Performance ........................................................................................ 2

2.1.1 Earning per share (EPS) .............................................................................. 2

2.1.2 Dividend per share (DPS) ............................................................................ 3

2.1.3 Price Earning Ratio (PER) ........................................................................... 5

2.2 Profitability...................................................................................................... 6

2.2.1 Return on equity (ROE) ............................................................................... 6

2.2.2 Return on asset (ROA) ................................................................................ 9

2.3 Efficiency ...................................................................................................... 10

2.3.1 Asset turnover ratio ................................................................................... 10

2.3.2 Days inventory........................................................................................... 11

2.3.3 Days debtors .............................................................................................. 12

2.4 Liquidity ........................................................................................................ 13

2.4.1 The current ratio ........................................................................................ 13

2.4.2 The quick asset ratio .................................................................................. 14

2.5 Capital structure ............................................................................................ 15

 2.5.1 Debt to Equity............................................................................................ 15

2.5.2 Interest Servicing Ratios ............................................................................ 16

3 Recommendation ................................................................................................... 18

3.1 Optimize cost to generate more revenue ....................................................... 18

3.2 Learning model together ............................................................................... 18

Table of Figure

Figure 1: The earnings per share of Vietnam Airlines and Vietjet Air .......................... 2

Figure 2: The dividend per share of Vietnam Airlines and Vietjet Air ......................... 3

Figure 3: The Price Earning ratio in 2017 of VNA and VJC......................................... 5

Figure 4: Return on Equity Ratio of Vietnam Airlines and Vietjet Air ......................... 6

Figure 5: COGS on revenue of Vietnam Airlines and Vietjet Air ................................. 7

Figure 6: SG&A on revenue of Vietnam Airlines and Vietjet Air ................................ 8

Figure 7: Gross profit margin, Operation profit margin and Net profit margin ratios of

Vietnam Airlines and Vietjet Air ................................................................................... 9

Figure 8: Return on asset of Vietnam Airlines and Vietjet Air ..................................... 9

Figure 9: Asset turnover ratio of Vietnam Airlines and Vietjet Air ............................ 10

Figure 10: Day inventory of Vietnam Airline and Vietjet Air..................................... 11

Figure 11: Days debtors of Vietnam Airlines and Vietjet Air ..................................... 12

Figure 12: The current ratio of Vietnam Airlines and Vietjet Air ............................... 13

Figure 13: The quick asset ratio of Vietnam Airlines and Vietjet Air ......................... 14

Figure 14: The Debt to Equity ratio of Vietnam Airlines and Vietjet Air ................... 15

Figure 15: The Debt ratio of Vietnam Airlines and Vietjet Air ................................... 16

Figure 16: The Interest Servicing Ratios of Vietnam Airlines and Vietjet Air ........... 17
1 Introduction

1.1 Vietnam Airlines

April 1993, Vietnam Airlines (VNA) was established as the country’s national

flag carrier. On 27 May 1995, Vietnam Airlines Corporation was born with the

gathering of 20 aviation enterprises and the airline itself as the core business. On 20

October 2002, Vietnam Airlines introduced the new logo of the Golden Lotus and

corporate identity that symbolized its dramatic progress towards becoming a world-

class airline.

In 2006, Vietnam airlines awarded the IATA Operational Safety Audit

(IOSA) certificate, a strict safety standard set by Aviation Quality Services (AQS),

Vietnam Airlines joined the International Air Transport Association (IATA) as an

official member, affirming its international standard. In June 2010, Vietnam Airlines

joined SkyTeam, the world’s second largest global airline alliance, affirming the

carrier’s new position on the global aviation map as the strategic partner of the

alliance in Southeast Asia region as well as its international standard services. In July

2016, Vietnam Airlines received a 4-Star Airline Certificate from Skytrax, the world’s

leading airline and airport rating organization.

1.2 Vietjet Air

Vietjet Air (VJC) is an official IATA member with IOSA's (IATA Operational

Safety Audit) certificate. Culture of safety is a significant integral part of Vietjet

corporate culture. This will be grasped thorough by every staff at Vietjet. Currently,

the airline operates a route network covering destinations nation-wide and more than

30 regional destinations in Thailand, Singapore, South Korea, Taiwan, Malaysia,

1
China, Japan, Hong Kong and Myanmar. It is operating a fleet of A320s and A321s

with average age of 3.3 years old. For 5 years of taking off and serving our customers,

Vietjet has honored with 32 domestic awards and 9 significant international awards.

The carrier was awarded “Vietnam’s best place to work” in consecutive years and

“the Best Employer Brand Asia Awards 2016”. In addition to domestic and

international awards and recognition, the carrier also received the flag of emulation

from the Prime Minister for its excellent contribution to development of Vietnam

aviation industry.

2 Financial analysis

2.1 Market Performance

2.1.1 Earning per share (EPS)

EPS
16000
14219
14000

12000

10000
8071 8319
8000

6000

4000
1685 1931
2000
213
0
2015 2016 2017

VNA VJC

Figure 1: The earnings per share of Vietnam Airlines and Vietjet Air
from 2015 to 2017

2
 Earnings per share (EPS) is the net income per share. When EPS is high, it

gives us a signal that this share might have potential increase price in market stock in

near future. Moreover, it may be paid high dividend.

The above graph reveals that the EPS of both companies increase through the

years from 2015 to 2017. It is undeniable that the earning per share of Vietjet Air is

always far higher than Vietnam Airlines. In details, in 2017, EPS of Vietjet was about

seven times higher compared to Vietnam Airlines, which means, Vietjet Air is using

the capital more effectively than Vietnam Airlines. Basing on this index may

investors prefer to buy the share of VNA rather than VJC, and apparently current

market price of VJC is much higher. In 2017, market price of VNA was 43,099VND

while VJC`s was 189,200; 4.3 times higher.

2.1.2 Dividend per share (DPS)

DPS
3000
2000
2500

2000

1500
1000
1000
600
500
0 0
0
2015 2016 2017

VNA VJC

Figure 2: The dividend per share of Vietnam Airlines and Vietjet Air
from 2015 to 2017

3
 The dividend per share (DPS) reflects how much of the earning will be paid

back to investors. The higher DPS is, the more interest that investor will pay to the

share. According to the graph, DPS of both companies increased through period 2015

to 2017.

In the year 2015, both companies did not pay dividend to shareholders. From

Vietnam Airlines, this is completely understandable as they completed equitization in

October 2016. For Vietjet Air, all shareholders agreed to take all the earning to

increase equity for coming years, as at that time, the equity of Vietjet was still low

(800 billion VND).

In 2016, Vietnam Airlines also did not pay dividend as it just started IPO for

some months. Meanwhile, Vietjet Air paid 1,000 VND of dividend for each share, at

the rate of 10% of original price. That amount of dividend was paid in May 2015,

along with a free ticket flight as a gift for shareholders.

In 2017, VJC paid 2,000 VND of dividend for each share, while that number of

VNA was only 600 VND. This was because the earning per share of VJC was much

higher than VNA (14,219 VND compared to 1,931 VND). It was to say that Vietjet

air’s share attract more investors in secondary market as it brought about more benefit

compared to Vietnam Airlines.

4
 2.1.3 Price Earning Ratio (PER)

PER of 2017
25
22.32

20

15
13.06

10

0
VNA VJC

Figure 3: The Price Earning ratio in 2017 of VNA and VJC

The price-to-earnings ratio helps investors determine how much an investor

would have to pay for each dollar in return.

As Vietjet Air first listed its shares on Ho Chi Minh City Stock Exchange

(HOSE) and issued largest IPO in Feb 2017, with market capitalization having tripled

since then to reach 3.6 billion USD. For Vietnam Airlines, the time for IPO was in

January 2017, that was why in 2015 and 2016, the PER ratio was not available for

both companies.

In 2017, the PER of Vietnam Airlines was about 1.6 times higher than Vietjet

Air’s. The reason behind was, EPS of Vietnam Airlines was too low. The market

price of Vietnam Airlines in that year was 43,099 VND, while that number for Vietjet

Air was 4.3 times higher (189,200 VND). However, the EPS of Vietjet Air was about

seven times higher. This means for Vietnam Airlines’ shares, investors were over

5
evaluating its value, because they believed that Vietnam Airlines had more stable and

long-term development.

2.2 Profitability

2.2.1 Return on equity (ROE)

Return on Equity ratio is one the most important ratios which expresses the

current situation about financial performance of the company. ROE shows how much

profit that the investors can get through their investment to the company. The

company who has high number of ROE presents the ability to use investors’ equity

more effectively. It means that the company knows how to balance the equity and

liability to develop competitive advantage, expand the company.

ROE
60% 54%
51%
48%
50%

40%

30%

20% 14%
13%
10%
3%
0%
2015 2016 2017

VNA VJC

Figure 4: Return on Equity Ratio of Vietnam Airlines and Vietjet Air

from 2015 to 2017
The chart above provides the information about the ROE ratios in Vietnam

Airline and Vietjet Air over a period of three years from 2015. Overall, the ROE

ratios in Vietjet Air decreased slowly from 54% to 48%, while it increased a little bit

in Vietnam Airline from 3% to 14%. However, the ROE ratio in Vietjet Air was

6
always at high level, it means that Vietjet Air was more attractive to investors than

Vietnam Airline.

Three factors which impact to ROE are asset turnover, profit margin and

leverage ratios. In this part, the writers will focus on the profit margin. Asset turnover

and leverage ratios will be analyzed in the next parts.

First of all, looking at the gross profit margin, the trend in changing fuel price

impacts directly to cost of good sales (COGS), which made gross profit go down

when price increases. Below chart shows ratio which is calculated by the ratio

between COGS and revenue of each company from 2015 to 2017. Both companies

had high rate of COGS on their revenue.

COGS on revenue
90.00% 89.37%
89.00%

88.00% 87.29% 87.13%

86.64%
87.00%

86.00% VNA

85.00% 84.53% 84.52% VJC

84.00%

83.00%

82.00%
2015 2016 2017

Figure 5: COGS on revenue of Vietnam Airlines and Vietjet Air

from 2015 to 2017

Secondly, regarding operation profit margin, operation profit is calculated by

gross profit deduct SG&A (Selling in general and Administration). So company who

has the lower cost in SG&A will have the higher ratio of Operation profit margin.

Figures 6 shows the lower ratio of SG&A cost on revenue in each year of Vietjet Air

7
than Vietnam Airline. The management team of Vietjet Air had successful in

controlling cost during this period of time.

SG&A on revenue
12.00%

10.00% 9.25% 9.56%

8.68%
8.00%

6.00% VNA
VJC
4.00%
2.63% 2.46%
1.90%
2.00%

0.00%
2015 2016 2017

Figure 6: SG&A on revenue of Vietnam Airlines and Vietjet Air

from 2015 to 2017

Finally, following net profit margin, net profit is the amount of operation

profit after deducting all tax and expenses. From the graph 7 below, the Gross profit

margin ratio of Vietnam Airline were always higher than Vietjet Air in 2015 and

2016, but the operation profit margin and net profit margin of Vietjet Air are higher

than Vietnam Airlines. In 2017, the ratio of gross profit margin on Vietnam Airline

was less than Vietjet Air and with the higher cost of COGS and SG&A, the operation

and net profit margin ratios were still lower than Vietjet Air. It presented that Vietjet

Air was well-controlling their COGS as well as SG&A, that made them more

attractive to investors.

8
 Gross profit margin, Operation profit margin and Net profit margin ratios
18%
15% 16%
16%
13% 13% 13% 13%
14% 12%
12% 11%
9%
10% 8%
8% 7% 6%
6% 6%
6%
3% 3% 3%
4%
2% 1%
0%
2015 2016 2017 2015 2016 2017 2015 2016 2017
Gross profit margin Operation profit margin Net profit margin

VNA VJC

Figure 7: Gross profit margin, Operation profit margin and Net profit margin
ratios of Vietnam Airlines and Vietjet Air from 2015 to 2017

2.2.2 Return on asset (ROA)

ROA
25%
21%
20%
16%
15% 13%
VNA
10% VJC

4% 5%
5%
2%

0%
2015 2016 2017

Figure 8: Return on asset of Vietnam Airlines and Vietjet Air

from 2015 to 2017
Return on assets shows how much profit the company can get from its assets.

The company who has high ratio of ROA is showed how well-managing it is. This is

one of important ratio for investors to decide how much they can invest into the

9
company, because of basing on ROA, they are well-known the liquidation from their

money to Earning before tax an interest.

The graph above provides information about ROA ratios of Vietnam Airline

and Vietjet Air from 2015 to 2017. Overall, the ROA of Vietjet Air was always high

and higher than Vietnam Airline. For Vietjet Air, this was a successful in

management and their strategies when buying and releasing aircraft, which leaded less

assets but higher revenue. This created more attractive from investors to the

company.

2.3 Efficiency

2.3.1 Asset turnover ratio

The graph on below compares how effective Vietnam Airline and Vietjet Air

utilize their assets to generate revenue, between the years 2015 and 2017. By using

asset turnover ratio, investors can get an idea of how a company is managed and uses

its assets to produce products and sales.

Asset turnover ratio

2.50

2.01
2.00
1.72
1.64
1.50
VNA
1.00 0.90 VJC
0.76
0.61
0.50

0.00
2015 2016 2017

Figure 9: Asset turnover ratio of Vietnam Airlines and Vietjet Air

from 2015 to 2017

10
 Overall, this financial ratio of Vietjet Air is always higher than Vietnam

Airline within three years. By following sale and leaseback, total asset of Vietjet Air

is much lower than Vietnam Airline. Besides, this model helps Vietjet Air expand

fleets without investing too much capital. Thanks to the strong growth of fleet, Vietjet

promoted more sales. This results confirmed that the Vietjet Air used sale and

leaseback strategy effectively to do rapid success, growth and make up these financial

ratios which are higher than Vietnam Airline as well.

However, for Vietnam Airline, asset turnover ratio was improved, rising

steadily from 0.61 times in 2015 to 0.9 times in 2017. Meanwhile, for Vietjet Air,

there was a downward trend in asset turnover ratio, from 2.01 times in 2015 to 1.64

times in 2017. This is because Vietjet Air had average total asset which rose

significantly 2.6 times, from 9860 billions in 2015 to 25860 billions in 2017 while

revenue increased 2.13 times, from approximately 20 billions in 2015 to 42 billions in

2017. For Vietnam Airline, company has had slight increase in numbers, with the rate

of growth in average total asset is 1.2 times while revenue increased 1.69 times, from

approximately 50 billions in 2015 to 82 billions in 2017.

2.3.2 Days inventory

Days inventory
18 16 16
16 14
14
12
10 VNA
8
VJC
6
4 3 2 2
2
0
2015 2016 2017

Figure 10: Day inventory of Vietnam Airline and Vietjet Air from 2015 to 2017

11
 The chart gives data about days inventory for Vietjet Air and Vietnam Airline

from 2015 to 2017. It can be seen that Vietjet Air had much lower rate. The ratio of

Vietnam Airline has fluctuated around 16% for three years while the figure for

another one experienced a decline over period. Starting at 3% during the first year of

the period, the percentage of days inventory in Vietjet Air dropped to about 2%

during next two years. Most factors to record in inventory are oil, fuel,….

2.3.3 Days debtors

Days debtors
25 23

20
17
16 16
15 14
VNA
10 VJC
6
5

0
2015 2016 2017

Figure 11: Days debtors of Vietnam Airlines and Vietjet Air from 2015 to 2017
Days debtors measures average number of days that it takes a customer to pay

the company for sales. Looking at the chart in more detail, in 2015, Vietnam Airlines

had 23 days to receive payment after sale, which was significantly higher than the

figure for Vietjet Air, at only 6 days. Over the following two years, the number of

Vietnam Airlines decreased to reach a peak of about 16 days. By contrast, there was

minor fluctuation for Vietjet Air around 6 to 16 days.

12
 2.4 Liquidity

2.4.1 The current ratio

Current ratio
1.40 1.27
1.20
0.98 0.96
1.00
0.76
0.80 0.69
0.65 VNA
0.60 VJC
0.40

0.20

0.00
2015 2016 2017

Figure 12: The current ratio of Vietnam Airlines and Vietjet Air
from 2015 to 2017
The bar chart indicates the current ratio of Viet Nam Airlines and VietJet Air

from 2015 to 2017. This ratio is mainly used to give an idea of the company's ability

to pay back its short-term liabilities with its current asset. The higher the current ratio,

the more capable the company is of paying its. A current ratio of 1.0 or greater is an

indication that the company is well position to cover its short-term liabilities. It

indicates that the current ratio of Vietjet Air has been standing at highest level in 2017

and higher than the benchmark compare to Vietnam Airlines. In three years, Vietjet

Air had rapid growth. Hence the actual current assets of the company was increasing

nearly triple and current liabilities was almost double. This resulted that it could be

believed in that company has a small liquidity risk. Whereas, both current asset and

current liabilities of Vietnam Airlines changed slightly within three years. It is

obvious that Vietnam Airlines develop steadily. However, liquidity risk of this firm

was higher when benchmark to Vietjet Air.

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 2.4.2 The quick asset ratio

Quick asset ratio

1.40
1.25
1.20

1.00 0.95 0.95

0.80
0.63 0.66 VNA
0.60 0.54
VJC
0.40

0.20

-
2015 2016 2017

Figure 13: The quick asset ratio of Vietnam Airlines and Vietjet Air
from 2015 to 2017
This chart presents the quick asset ratio for the period of three years, from

2015 to 2017. As known, the quick asset ratio is more conservative than the current

ratio because it excludes inventories from current assets and inventories generally

take time to be converted into cash. For the given years, quick asset ratio of VJC is

always higher than the VNA. The quick asset ratio of VJC has a slight increase in this

ration from 2015, then dramatically increase in 2017.

According to the standard index, the minimum suggested number for current

ratio and quick ratio are 1.5 and 0.8. It can be concluded that Vietjet Air is in the safe

zone and is more ideal with the ratio numbers are all over the suggested standard.

14
 2.5 Capital structure

2.5.1 Debt to Equity

Debt to Equity ratio

700%
634%
600%
494%
500% 461%
408%
400%
324%
300%
199%
200%

100%

0%
2015 2016 2017

VNA VJC

Figure 14: The Debt to Equity ratio of Vietnam Airlines and Vietjet Air
from 2015 to 2017
The debt to equity ratio is a financial, liquidity ratio that compares a

company’s total debt to total equity. The debt to equity ratio shows the percentage of

company financing that comes from creditors and investors. A higher debt to equity

ratio indicates that more creditor financing (bank loans) is used than investor

financing (shareholders). In the fiscal years 2015, 2016 and 2017, VNA’s debt-to-

equity ratio was 634%, 494% and 408%, respectively. This ratio of VNA is high, a lot

of debt is used to finance growth. The more financial leverage, the more risky.

However, this ratio tends to decrease. It’s more better if Vietnam Airlines control the

debt to equity ratio to decrease in competitive aviation market in future. In the fiscal

years 2015, 2016 and 2017, Vietjet Air’s debt-to-equity ratio was 461%, 324% and

199%, respectively. This figures are also quite high for debt to equity ratio. However,

to compare with VNA, value of this ratio is still lower. We can see that Vietjet Air

15
control the percentage of debt to equity is better than Vietnam Airlines. And this ratio

is also decrease over years.

Debt ratio and equity show the same meaning as debt to equity ratio.

Debt ratio
100%
90% 86% 83%
80% 80%
70% 82%
76% 67%
60%
50%
40%
30%
20%
10%
0%
2015 2016 2017

VNA VJC

Figure 15: The Debt ratio of Vietnam Airlines and Vietjet Air from 2015 to 2017

2.5.2 Interest Servicing Ratios

The interest coverage ratio is a debt ratio and profitability ratio used to

determine how easily a company can pay interest on its outstanding debt. The interest

coverage ratio may be calculated by dividing a company's earnings before interest and

taxes (EBIT) during a given period by the company's interest payments due within

the same period.

16
 Interest Servicing Ratios
25.00
23.32
20.00
15.96
15.00
10.01
10.00

5.00 2.90
3.02
1.82
-
2015 2016 2017

VNA VJC

Figure 16: The Interest Servicing Ratios of Vietnam Airlines and Vietjet Air
from 2015 to 2017
Over the last three fiscal years, Vietnam Airlines have increased the interest

servicing ratios from 1.82 to 3.02. These figure is quite low for this ratio, it is not

good for Vietnam Airlines in covering Interest rates. Vietjet Air have good interest

servicing ratios, higher many time than Vietnam Airlines. In the fiscal years 2015,

2016 and 2017, VJC’s interest servicing ratios was 10.01, 15.96 and 23.32. This ratio

is increasing strongly from 2015 to 2017. This show that Vietjet Air’s ability to meet

its interest obligations good. It is an aspect of a company’s solvency, and is thus a

very important factor in the return for shareholders.

In summary, Vietnam Airlines and Vietjet Air have high debt to equity ratios,

especially Vietnam Airlines. Thus, it is essential to control and reduce the rate of debt

in capital structure to avoid risk in the competitive, growth airline market in the

future.

17
3 Recommendation

3.1 Optimize cost to generate more revenue

The major cost in the airlines industry is the cost of renting (or buying)

aircraft. Hence the main activity focuses on how to turn a plane around as quickly as

possible daily, called as planer turnaround times. For Vietjet Air – low-cost brand,

they can charge a high check-in baggage fee. As we know, Vietjet Air’s customer is

people who need only safe flight without extra services such as: foods, baggage

inclusive. If Vietjet Air increase baggage fee, our customer still accept and do not do

check-in baggage. This makes baggage loading time and luggage taking down time

match the time of going up and down for guests, leading to optimize waiting and

landing time and have many flights per day.

One of other significant costs of airline firm, especially Vietnam Airlines is

fuel cost. The fuel cost increased by 37.5% in 2017, which lead to the fact that the

rate of growth was lower than the rate of cost increase. Meanwhile, Vietjet Air used

Airbus planes, with the space-utilized design, can help to save 3.5% - 4% fuel

compared to Vietnam Airlines’ Boeing.

3.2 Learning model together

As we know, Vietjet Air tend to low-cost brand. They cut all extra services

such as: food, drink, baggage inclusive. Vietjet Air focuses on how to optimize plane

turnaround time because they apply totally sale and leaseback model. This model

helps firm generate an immediate profit. Vietnam Airline can apply a part –not totally

of this model to have a better ratios in statement and attract investors. By create new

service same as Vietjet Air for this customer’s pattern, Vietnam Airlines can add in

more auxiliary activities like VJC. For instance, choosing seat service, meal, extra

18
luggage….. These activities not even require very low variable cost, but also bring

back a lot of income for airlines service. Currently, Vietnam Airlines’ flight ticket

already includes those fees, that’s why it is always higher than a ticket flight of

Vietjet, which is less attractive to customers, and bring back less revenue to VNA.

On the other hand, Vietjet Air has ambition to expand international’s airline

which Vietnam Airline did well. The sale and leaseback model may be challenge for

Vietjet Air if company would like to do that. This requires Vietjet Air should learn

experienced from Vietnam Airline

19
 APPENDIX

1 Market Performance

1.1 Earning per share (EPS)

Year 2015 2016 2017

VNA 213 1,685 1,931

VJC 11,617 8,726 14,487

1.2 Price earning ratio (PER)

Ratio VNA VJC

EPS 1,931 14,487

Current market price (2017) 43,099 189,200

PER 22.32 13.06

2 Profitability

VNA VJC

2015 2016 2017 2015 2016 2017

ROE 3% 13% 14% 54% 51% 48%

Net profit to 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦
306,316,559,618 2,054,563,627,762 2,370,500,548,767 1,170,253,353,846 2,291,711,070,299 5,073,364,224,380
𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟𝑠
Average equity 12,142,391,521,300 16,244,643,919,692 17,432,919,723,530 2,147,440,280,350 4,524,702,955,645 10,594,134,518,111

ROA 2% 4% 5% 13% 16% 21%

EBIT 1,607,838,820,739 3,966,009,465,868 4,712,878,111,556 1,298,181,802,124 2,575,413,271,369 5,540,236,305,974

Average total asset

80,105,889,531,017 92,831,000,642,924 92,515,406,790,703 9,860,968,314,811 15,980,638,991,495 25,860,483,383,076
Gross profit margin 13% 15% 13% 11% 13% 16%

COGS 42,579,402,965,736 59,246,148,246,923 72,278,296,333,981 17,735,540,395,773 24,032,765,667,951 35,753,175,886,701

Gross profit 6,566,570,047,256 10,842,825,604,399 10,672,674,161,292 2,109,938,524,079 3,499,307,607,362 6,594,396,795,917

Sales revenue 49,145,973,012,992 70,088,973,851,322 82,950,970,495,273 19,845,478,919,852 27,532,073,275,313 42,302,572,682,618

Operation profit margin 3% 6% 6% 7% 9% 13%

SG&A 4,546,457,363,393 6,701,032,689,591 7,198,124,951,219 521,198,339,580 677,329,310,669 804,591,820,622

Operation profit (EBIT) 1,607,838,820,739 3,966,009,465,868 4,712,878,111,556 1,298,181,802,124 2,575,413,271,369 5,540,236,305,974

20
Sales revenue 49,145,973,012,992 70,088,973,851,322 82,950,970,495,273 19,845,478,919,852 27,532,073,275,313 42,302,572,682,618

Net profit margin 1% 3% 3% 6% 8% 12%

Net profit 480,421,817,624 2,105,237,094,697 2,659,113,264,057 1,170,631,713,663 2,289,865,822,188 5,073,651,413,698

Sales revenue 49,145,973,012,992 70,088,973,851,322 82,950,970,495,273 19,845,478,919,852 27,532,073,275,313 42,302,572,682,618

3 Efficiency

VNA VJC
2015 2016 2017 2015 2016 2017
Asset Turnover ratio 0.61 0.76 0.90 2.01 1.72 1.64

Sales revenue 19,845,478,919,852

49,145,973,012,992 70,088,973,851,322 82,950,970,495,273 27,532,073,275,313 42,302,572,682,618
9,860,968,314,811
Average total assets 80,105,889,531,017 92,831,000,642,924 92,515,406,790,703 15,980,638,991,495 25,860,483,383,076
Days inventory 16 14 16 3 2 2

Average inventory 1,854,495,497,485 2,310,606,701,759 3,145,784,839,116 129,024,743,388 145,899,459,508 202,555,908,128

Cost of sale (COGS) 42,579,402,965,736 59,246,148,246,923 72,278,296,333,981 17,735,540,395,773 23,597,459,394,556 35,753,175,886,701

Days debtors 23 17 16 6 16 14

Average trade debtors 3,134,655,102,276 3,287,620,442,336 3,703,552,000,167 343,813,916,995 1,203,166,116,320 1,603,109,033,305

Sales revenue 19,845,478,919,852
49,145,973,012,992 70,088,973,851,322 82,950,970,495,273 27,532,073,275,313 42,302,572,682,618

Days debtors 23 17 16 6 16 14

4 Liquidity

VNA VJC
2015 2016 2017 2015 2016 2017
Current ratio 0.69 0.76 0.65 0.98 0.96 1.27
Quick asset ratio 0.63 0.66 0.54 0.95 0.95 1.25

Current asset 19,256,814,319,168 22,309,076,409,828 21,122,732,928,741 6,257,864,316,315 10,645,209,229,231 17,668,643,983,650

Current liabilities 27,734,757,745,676 29,362,757,831,474 32,738,421,854,141 6,393,867,460,244 11,051,477,305,791 13,911,511,198,702

Inventory 1,800,165,563,797 2,821,047,839,720 3,470,521,838,511 164,428,122,872 127,370,796,144 267,181,519,500

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 5 Capital Structure

VNA VJC
2015 2016 2017 2015 2016 2017
Debt to Equity ratio 634% 494% 408% 461% 324% 199%
Liabilities 77,039,282,058,727 80,235,683,786,129 71,117,566,152,055 9,897,423,484,873 15,328,679,347,088 21,064,130,723,313
Equity 12,142,391,521,300 16,244,643,919,692 17,432,919,723,530 2,147,440,280,350 4,734,022,177,639 10,594,134,518,111
Debt ratio 86% 83% 80% 82% 76% 67%
Liabilities 77,039,282,058,727 80,235,683,786,129 71,117,566,152,055 9,897,423,484,873 15,328,679,347,088 21,064,130,723,313
Asset 89,181,673,580,027 96,480,327,705,821 88,550,485,875,585 12,044,863,765,223 20,062,701,524,727 31,658,265,241,424
Interest Servicing Ratio 1.82 2.90 3.02 10.01 15.96 23.32
EBIT 1,607,838,820,739 3,966,009,465,868 4,712,878,111,556 1,298,181,802,124 2,883,878,804,506 5,540,236,305,974
Net Finance expense 882,335,756,350 1,365,427,620,435 1,558,118,623,739 129,699,274,892 180,732,739,883 237,597,428,875

REFERENCES

Vietnam Airlines (2015 – 2017). “The consolidated financial statement”

Vietjet Air (2015 – 2017). “The consolidated financial statement”

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