Financial Statement Analysis
Fahmi Ben Abdelkader
Financial Statement Analysis
Examples of financial statements
This document provides the financial statements of three companies that will serve as a benchmark to calculate and analyze financial ratios during the class.
Table of contents
JIT (Just-In-Time Computer Services) financial statements ...................................... 2 JIT - The Income statement................................................................................................................... 2 JIT - The Balance Sheet ......................................................................................................................... 3 JIT - The cash flow statement............................................................................................................... 4 Nike Inc. Financial statements ..................................................................................... 5 NIKE - Income Statement ....................................................................................................................... 5 NIKE - Balance Sheet .............................................................................................................................. 6 NIKE - Cash Flow Statement ................................................................................................................ 7 Lufthansa (LHA) Financial statements ........................................................................ 8 Lufthansa - Annual Balance Sheet ..................................................................................................... 8 Lufthansa - Income statement ............................................................................................................ 10 Lufthansa - Statement of Cash Flows ............................................................................................. 11
Page 1 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
JIT (Just-In-Time Computer Services) financial statements JIT - The Income statement Year 2 186,7 89,7 97,0
Year 1 176,1 81,0 95,1
- Selling, general and administrative expenses - Research and development + Other Income
73,0 12,4 0,0
75,2 11,7 0,3
EBITDA
11,6
8,5
1,2
1,1
10,4
7,4
- Financial expense + Financial income
7,7 0,0
4,6 0,0
Earnings Before Taxes
2,7
2,8
+ Non-recurring items
0,3
0,0
Pretax Income
3,0
2,8
- Corporate income tax Net Earnings
1,0 2,0
0,9 1,9
Net Sales - Cost of Sales Gross Profit
- Depreciation, amortization and impairment losses on fixed assets EBIT
Page 2 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
JIT - The Balance Sheet Assets
Year 2
Year 1
0,0
0,0
41,0 78,7
14,0 66,9
1,0
0,0
120,7
80,9
Inventories
15,3
14,3
Accounts receivables
18,5
13,2
Other current assets
0,0
0,0
Short-term investments Cash and cash equivalents
2,0 21,2
1,0 19,5
Total current assets
57,0
48,0
TOTAL NET ASSETS
177,7
128,9
Year 2
Year 1
32,2
31,2
Long-term financial debt Non-current liabilities
106,0 106,0
61,8 61,8
Short-term financial debt Accounts payable Tax payables Current liabilities
9,0 29,9 0,6 39,5
11,0 24,5 0,4 35,9
177,7
128,9
Goodwill Intellectual property rights, brands and other intangible assets Net Property, Plant and Equipment Financial Assets (Equity in Joint ventures, investments in shares and participations, deferred tax assets, etc.) Total non-current assets
Liabilities and Shareholders' Equity Total Shareholders' Equity
TOTAL LIABILITIES AND EQUITY
Page 3 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
JIT - The cash flow statement
Net Earnings + Depreciation and amortization + Other adjustments to reconcile net income to cash
Year 2 2,0 1,2 -1,1
Cash effect of changes in operating net assets: - ∆ Accounts receivable - ∆ Inventories + ∆ Accounts payable - Increase in working capital
5,3 1,0 5,6 0,7
= Cash From Operating Activities (I)
1,3
- Capital expenditures - Acquisitions and other investing activity + Sales of property, plant and equipment + Divestments of subsidiaries and other operations
39,8 0,0 0,0 0,0
= Cash From Investing Activities (II)
-39,8
FREE CASH FLOW ( I + II )
-38,5
- Dividends paid + Sale or purchase of shares + Increase/decrease in short-term borrowing + Increase/decrease in long-term borrowing
1,0 0,0 -2,0 44,2
= Cash From Financing Activities (III)
41,2
Change in cash and cash equivalents = I+II+III
2,7
Page 4 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
Nike Inc. Financial statements http://finance.yahoo.com/q/is?s=NKE+Income+Statement&annual
NIKE - Income Statement
Page 5 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
NIKE - Balance Sheet
Page 6 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
NIKE - Cash Flow Statement
Page 7 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
Lufthansa (LHA) Financial statements Lufthansa - Annual Balance Sheet 12/31/2014 EUR
12/31/2013 EUR restated
12/31/2012 EUR restated
12/31/2011 EUR
12/31/2010 EUR restated
3 194
5 158
5 181
4 412
5 864
Assets Cash & ST Investments Cash Short Term Investments
828
1 407
1 436
887
1 097
2 366
3 751
3 745
3 525
4 767
Receivables (Net)
4 117
3 672
3 696
3 565
3 499
Inventories - Total
700
641
639
620
662
Raw Materials
563
517
527
512
550
Work In Process
-
-
-
-
-
Finished Goods
-
-
111
108
111
137
124
1
0
1
147
147
0
0
0
89
71
261
857
332
Current Assets - Total
8 247
9 689
9 777
9 454
10 357
Long Term Receivables
546
539
412
565
597
Investment In Unconsolidated Subsidiaries
445
441
692
659
747
Progress Payments & Other Prepaid Expenses Other Current Assets
Other Investments Property Plant & Equipment - Net Property Plant & Equipment - Gross Buildings Construction Work In Progress Machinery & Equipment Rental/Lease Property Transportation Equipment PP&E - Other PP&E Under Capitalized Leases (Less) Accumulated Depreciation Accum Depr-Buildings Accum Depr-Machinery & Equip. Accum Depr-Rental/Lease Property Accum Depr-Transport Equip. Accum Depr-PP&E Other Accum Depr-PP&E Under Cap Leases Other Assets Deferred Tax Assets Deferred Charges
1 385
855
512
1 221
1 450
15 681
14 418
14 818
14 550
14 150
31 337
29 428
30 147
29 406
28 425
2 497
2 378
2 137
2 087
2 097
-
-
-
71
-
1 123
1 097
1 069
1 044
1 015
-
-
150
201
219
26 364
24 561
24 672
23 115
22 135
1 353
1 392
1 256
2 117
2 134
-
-
804
771
781
2 864
2 808
15 329
14 856
14 275
1 177
1 096
940
872
860
819
814
776
746
722
-
-
66
105
116
12 792
12 202
12 284
11 919
11 435
868
898
878
901
908
-
-
384
313
234
4 170
3 166
2 348
1 632
2 019
1 489
622
755
33
82
11
16
25
24
26
Tangible Other Assets
1 083
959
0
0
0
Intangible Other Assets
1 587
1 569
1 568
1 575
1 911
Non-current Assets - Total
22 227
19 419
18 782
18 627
18 963
Total Assets
30 474
29 108
28 559
28 081
29 320
Page 8 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
Liabilities Accounts Payable ST Debt & Current Portion of LT Debt Accrued Payroll Income Taxes Payable Other Current Liabilities Current Liabilities - Total Long Term Debt
2 943
3 026
2 784
2 805
792
1 570
972
632
2 902 980
46
48
219
719
735
228
247
107
71
237
6 965
6 065
5 660
5 556
4 972
10 974
10 956
9 742
9 783
9 826 6 227
5 364
4 823
5 947
5 808
LT Debt Excl Capital Leases
2 405
1 912
3 159
3 283
3 535
Capitalized Lease Obligations
2 959
2 911
2 788
2 525
2 692
7 832
5 314
6 426
2 743
3 214
Deferred Income
Provision for Risks & Charges
705
729
722
718
666
Deferred Tax Liabilities
239
146
94
364
405
1 329
1 032
789
621
642
Non-current Liabilities - Total
15 469
12 044
13 978
10 254
11 154
Total Liabilities
26 443
23 000
23 720
20 037
20 980
Other Liabilities
Shareholders' Equity Minority Interest
63
52
60
95
98
Common Equity
3 968
6 056
4 779
7 949
8 242
Common Stock
1 185
1 180
1 177
1 172
1 172
Capital Surplus
0
0
1 382
1 366
1 366
236
236
236
193
193
Revaluation Reserves Other Appropriated Reserves
-
-
-
26
26
Unappropriated (Free) Reserves
-
-
332
343
339
1 776
4 038
1 165
3 761
4 049
364
270
318
322
241
Retained Earnings Unrealized Foreign Exchange Gain(Loss) Unrealized Gain(Loss) on Marketable Securities Total Shareholders Equity Total Liabilities & Shareholders Equity
407
332
169
766
856
4 031
6 108
4 839
8 044
8 340
30 474
29 108
28 559
28 081
29 320
Page 9 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
Lufthansa - Income statement
Net Sales or Revenues - Cost of Goods Sold Cost of Materials and Services Staff Costs Changes in Inventories and Work Performed by Entity and Capitalised Gross Profit - Net Operating Expenses Operating Income Operating Expenses EBITDA -Depreciation, Amortization & Impairment EBIT + Result of equity investments accounted for using the equity method + Result of other equity investments - Net Interest Interest Income Interest Expenses - Other financial items Pretax Income - Income Taxes Current Domestic Income Tax Deferred Domestic Income Tax -Minority Interest ± Discontinued Operations Net Income Before Extra Items & Preferred Dividend ± Extra Items & Gain (Loss) on Sale of Assets Net Income to Common Shareholders EPS Incl Extraordinary Items EPS - Continuing Operations Dividend Per Share Common Shares Used to Calc Diluted EPS
12/31/2014 EUR 30 011 24 406
12/31/2013 EUR restated 30 027 24 696
12/31/2012 EUR restated 30 135 24 574
12/31/2011 EUR 28 734 23 270
12/31/2010 EUR restated 26 459 21 026
17 283 7 335
17 498 7 356
17 946 6 741
16 731 6 678
14 700 6 491
212 5 605 3 326 1 953 5 279 2 279
158 5 331 2 713 2 043 4 756 2 618
113 5 561 2 100 2 785 4 885 3 461
139 5 464 2 969 2 324 5 293 2 495
165 5 433 2 393 2 610 5 003 3 040
1 512 767
1 767 851
1 839 1 622
1 722 773
1 654 1 386
77
91
31
(20)
46
44 279 135 414 429 180 105
33 346 162 508 83 546 220
63 372 168 540 48 1 296 91
91 288 190 478 110 446 157
57 346 197 543 9 1 134 (161)
156
265
104
72
220
(51) 20 0
(45) 13 0
(13) 13 (80)
85 17 (285)
(381) 12 (152)
55
313
1 112
(13)
1 131
0
0
116
0
0
55
313
1 228
(13)
1 131
0,12 0,12 0,00
0,68 0,68 0,45
2,68 2,60 0,00
(0,03) 0,59 0,25
2,47 2,80 0,60
461 391 177
460 154 670
458 401 038
457 907 886
458 270 418
Page 10 of 11
Financial Statement Analysis
Fahmi Ben Abdelkader
Lufthansa - Statement of Cash Flows
12/31/2014 EUR
12/31/2013 EUR restated
12/31/2012 EUR restated
12/31/2011 EUR
1 407 180
12/31/2010 EUR restated
1 438
887
1 097
1 136
546
1 296
446
1 134
1 508
1 739
1 925
1 780
1 659
1 516
1 764
1 867
1 755
1 637
Operations Cash and Cash Equivalents 1.1. Net profit/loss before income taxes Depreciation, Depletion & Amortization Depreciation, amortization and impairment losses on non-current Assets (net of reversals) Depreciation, amortization and impairment losses on current Assets (net of reversals)
(8)
(25)
58
25
22
140
(11)
(739)
(25)
(214)
(121)
(124)
(94)
(71)
(103)
279
346
372
288
346
Deferred Income Taxes & Investment Tax Credit Measurment of Financial derivatives through profit or loss
(220)
(93)
(34)
(265)
(110)
413
80
19
73
(7)
Change in Working Capital
(202)
807
179
291
440
0
0
(82)
(161)
(153)
1 977
3 290
2 842
2 356
2 992
(2 699)
(2 444)
(2 292)
(2 445)
(2 222)
(60)
(26)
(67)
(87)
(38)
(100)
(39)
(120)
4
(76)
49
13
404
7
113
0
(8)
(176)
0
0
(14)
(29)
0
(28)
(11)
(4)
0
0
(6)
(2)
Net proceeds on disposal of non-current assets Results of Equity Investments Net interest
Cash Flow from discontinued Operations Cash Flow from Operating Activities - CFO Investing Capital Expenditures for property, plant and equipment and intangible assets Capital Expenditures for financial investments Additions/loss to reparaible spare parts of aircraft Proceeds from disposal of non-consolidated equity investments Proceeds from disposal of consolidated equity investments Cash outflows for acquisitions of non-consoidated equity investments Cash outflows for acquisitions of consoidated equity investments Proceeds from disposal of intangible assets, property, plant and equipment and other financial investments
161
233
418
458
398
Interest Income
256
228
296
336
314
Dividends Received
137
89
92
118
74
Net Cash from / used in investing activities - CFI
(2 274)
(1 983)
(1 445)
(1 643)
(1 450)
Purchase of securities / fund investments
(974)
(1 699)
(1 316)
(1 367)
(2 251)
Disposal of securities / fund investments Net cash from / used in investing and cash managment activities
1 758
1 278
571
1 902
906
(1 490)
(2 404)
(2 190)
(1 108)
(2 795)
0
Financing Capital Increase
0
0
0
5
Transaction with minority interest
0
(9)
0
0
0
1 102
536
1 106
740
925
(1 572)
(993)
(637)
(1 413)
(720)
0
0
0
(8)
(36)
Dividends paid
(222)
(14)
(131)
(296)
(18)
Interest paid
(380)
(424)
(449)
(449)
(451)
(1 072)
(904)
(111)
(1 421)
(300)
(585)
(18)
541
(173)
(103) 64
Non-current borrowing Repayment of non-current borrowing Other financial debt
Net Cash from / used in financing activities - CFF Net Increase / decrease in cash and cash equivalents Change due to currency translation differences
6
(13)
8
9
Cash included in assets held for sale
0
0
0
(46)
0
Cash and Cash Equivalents 31.12.
828
1 407
1 436
887
1 097
Page 11 of 11
