FI NAL PAPER

I n t r o d u c t o r y A c c o u n t i n g I I

PT. Garuda Indonesia




Page 1
Prepared for: Ibu Desti Fitriani S.E., Ak., M.A., CPMA
Course: Introductory Accounting II (ACCT 11103)
Date of Submission: Thursday, June 12, 2014

Prepared by:
Abdul Robby Nabi (1306387286)
Filip Ferdi (1306438785)
Melvin Hade (1306388364)
TABLE OF CONTENT

Statement of Authorship 3
Executive Summary 4
Chapter 1: Company Profile 5
Chapter 2: Financial Analysis 6
2A. Horizontal Analysis 7
2B. Vertical Analysis 9
2C. Ratio Analysis 11
Chapter 3: Conclusion 14
Chapter 4: Appendix 15
4A. Horizontal Analysis Calculation 16
4B. Vertical Analysis Calculation 20
4C. Ratio Analysis Calculation 24
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STATEMENT OF AUTHORSHIP

We, the signatories signing under this statement, states that the work
that is attached to this Statement of Authorship is purely my own work
without any other contribution from other parties, unless it is clearly
cited and stated in this work.

This work has also never been published or used for any other purposes
or classes and that the materials presented on this paper has not been
presented at any other occasion.

We are also aware that this paper could be multiplied for the sake of
identifying the chance of plagiarism.

Name NPM Major Signature
Abdul Robby Nabi 1306387286 Economics
Filip Ferdi 1306438785 Accounting
Melvin Hade 1306388364 Economics
Page 3
EXECUTIVE SUMMARY

This paper was prepared to fulfill the requirement of the course
Introductory Accounting II with Ibu Desti Fitriani S.E., Ak., M.A., CPMA.
Garuda Indonesia is a national airline service provider in Indonesia that
offers full-service airline. This paper will assess Garuda Indonesias
financial performance for the year 2011 and 2012 and different
analytical tool will be used to analyze Garuda Indonesias performance
such as Horizontal Analysis, Vertical Analysis and Ratio Analysis.

Garuda Indonesia has performed tremendously well in both years,
especially in 2012 because it has successfully managed to improve
various financial indicators as well as boosting sales and net income.
They also have better liquidity position as well as solvency and
profitability level. However, one hinderance that prevents Garuda
Indonesia from getting a straight A performance is that the market
expects Garuda Indonesia to be associated with higher risk in the future
due to a decrease in their Price-Earning ratio. Other than that, Garuda
Indonesia has performed exceptionally well.



Page 4
CHAPTER 1: COMPANY PROFILE
PT. Garuda Indonesia (Persero) Tbk, (formerly known as Garuda Indonesian
Airways) is a state-owned airline based in Jakarta that was launched in 1949. It
offers more than 42 domestic ights and 24 international ights in rst class,
business class and economy class. Garuda Indonesia provides is a full-service
airline, but they also have a low-cost subsidiary called PT. Citilink Indonesia to
serve domestic routes in Indonesia. As of 2012, the company has a total of 106
eets, ranging from Boeing 747-400, Airbus 330-300, Boeing 737 Classic, etc. In
2012, the Garuda Indonesia group carried a total of more than 20 million
passengers. The airline has complied with international safety standards given by
international institution such as the IATA (International Air Transport Association).
Garuda Indonesia was awarded Worlds Most Improved Airline by Skytrax World
Airline Awards in 2010. And in 2012, based on Roy Morgan research company,
Garuda Indonesia has been recognized as the Best International Airline among all
major airline in the world with 91 percent of the respondents being very satised.
Last but not least, in 2013 Garuda Indonesia was awarded the Worlds Best
Economy Class for its service and products by Skytrax.
Page 5





CHAPTER 2: FINANCIAL ANALYSIS
A. Horizontal Analysis
B. Vertical Analysis
C. Ratio Analysis

Page 6
2A. HORIZONTAL ANALYSIS

We could rst conduct our horizontal analysis by reviewing the Comparative
Income Statement of 2011 and 2012. The rst thing that we can notice is that
Garuda Indonesia has performed well in 2012, where we could indicate that there
is an in in Total Operating Revenues by 12.1%. This increase in Total Operating
Revenues was driven by an increase in sales from Schedule Airlines Services by
11.9% as well as sales from Non-Scheduled Airlines Services by 9.2%. This means
that in terms of sales, Garuda Indonesia has both boost sales in 2012, in
comparison to 2011. The net increase of 12.1% in their Operating Revenue
outweighs the increase in the Operating Expense of only 10%. Logically, we can
see that a 12.1% increase in Total Operating Revenues and a only 10% increase in
Total Operating Expense will generate a greater Income from Operations. And this
is true because, Garuda Indonesias Income from Operations increase signicantly
between 2011 and 2012, where there is an increase as staggering as 82%.
Moreover, after it is deducted by tax expense, Net Income for the Year of 2012 has
increased as much as 72.6% for Garuda Indonesia.

This shows that Garuda Indonesia has performed extensively well in 2012
because it managed to increase Net Income for the Year by 72.6%, thanks to the
increase in Operating Revenues. Moreover, we can also review the Other
Comprehensive Income for Garuda Indonesia in between 2011 and 2012, to give
an in-depth understanding of Garuda Indonesias performance in both 2011 and
2012. Garuda Indonesia also experience a signicant increase in Other
Comprehensive Income by 307.9%. The reason why Other Comprehensive Income
for Garuda Indonesia increased signicantly between 2011 and 2012 is because
Garuda Indonesia experience a signicant increase on their Gains on Revaluation
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of Property and Equipment by 360.6%. This drives the net increase of Total Other
Comprehensive Income by 307.9%. This situation brings Garuda Indonesia to
record a 100% net increase in Total Comprehensive Income between 2011 and
2012, resulting a $14.5 million in 2012.

Next, we could turn our heads to the Comparative Balance Sheet. In 2012, Garuda
Indonesia nanced its operation mainly through Long-Term Loans as much as
$300 million. However, they have managed to reduce the amount of Bank Loans
in 2012 by 83.96%, while Long-Term Loans has increased between 2011 and 2012
by 63.91%. This data shows that Garuda Indonesia has shifted its nancing
scheme by having less Bank Loans and increase Long-term Loans in 2012. Total
Asset for Garuda Indonesia also increased by 55.28% in 2012, in comparison to
2011 and this was mainly driven by the increase in Cash as much as 148.78%.

By now, we should get a picture of how Garuda Indonesia has performed in both
2011 and 2012 and how they have shifted their nancing sources proportion. We
also understand that they have performed extensively well in terms of sales and in
order to give a more detailed understanding of Garuda Indonesias performance
in 2011 and 2012, we will now take a look at the Vertical Analysis.
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2B. VERTICAL ANALYSIS

Under Vertical Analysis, 2011 will be the base year where the base amount of 100
will be set to both Total Asset as well as Total Liabilities plus Equity. The Vertical
Analysis is useful in understanding the composition of a particular account. For
example, we could clearly understand where the greatest portion of the Total
Asset is coming from under the Vertical Analysis.

There are several highlights that should be pointed out under the Vertical Analysis
of Garuda Indonesias performance in 2011 and 2012. The rst highlight is that
we should be aware that there is a slight decrease in the proportion of the Current
Asset towards Total Asset. In 2011, the proportion of Current Asset towards Total
Asset is 26.03%, but in 2012, this number has decreased to 25.28%. This will then
clearly change the proportion of Garuda Indonesias Non-Current Asset towards
Total Asset between 2011 and 2012. In 2011, the proportion of Non-Current Asset
towards Total Asset is 73.97%, while the proportion has slightly increased in 2012
to 74.72%. Hence, the rst highlight is that there is an increase in the proportion
of Non-Current Asset towards the Total Asset which means that there is a decrease
in the proportion of Current Asset towards Total Asset in 2012, compared to 2011.

The next highlight that we can point out is under the Liabilities and Equity
Account. There is also changes in the proportion of Current Liabilities, Non-
Current Liabilities as well as Equity towards the Total Liabilities and Equity account.
In 2011, the proportion of Current Liabilities towards the Total Liabilities and
Equity is 35.2%, however in 2012, this proportion has decreased to only 30%. This
also goes for the proportion of Non-Current Liabilities towards Total Liabilities and
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Equity where in 2011, the proportion of Non-Current Liabilities towards Total
Liabilities and Equity was 34.2%, while in 2012 this number has decreased to
25.8%. The proportion of Total Liabilities has now decreased in 2012, in
comparison to 2011 and this means that there is an increase in the proportion of
Total Equity towards Total Liabilities and Equity. The proportion of Total Equity
towards Total Liabilities and Equity has increased from 30.6% in 2011 to 44.3% in
2012. Hence, the second highlight under the Vertical Analysis is that the
proportion of both, the Non-Current Liabilities and the Current Liabilities has
decreased towards Total Liabilities and Equity and the proportion of Total Equity
has increased.

Under the Comparative Income Statement, the base year will also be set to the
year 2011, but the base year amount of 100 will be set to Total Operating
Revenue. In 2011, the proportion of Total Operating Expense towards Total
Operating Revenues is as high as 97%. This means that 97% of the Total
Operating Revenues is transformed into the form of an expense, while the
remaining 3% becomes the Income from Operations of Garuda Indonesia in 2011.
The highlight that should be made is that the proportion of Total Operating
Expense in 2012 has decreased from 97% in 2011 to 95.2% in 2012. This means
that in 2012, the proportion of Total Operating Expense is only 95.2% towards
Total Operating Revenues. This is a good indicator because this means that
Garuda Indonesia has reduced the proportion of its Operating Expense towards
the Total Operating Revenues. Thus, the proportion of Income from Operation
towards Operating Revenues in 2012 has increased to 4.8% in 2012, in
comparison to 3.0% in 2011. This fact also conrms the increase in Net Income of
the Year for Garuda Indonesia in 2012.
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2C. RATIO ANALYSIS

The rst point that should be highlighted is that Garuda Indonesia is an airline
service company that does not have any Inventories as well as Cost of Goods Sold
in their Financial Report. Hence, there are some Ration Analysis indicators that
cannot be satised, due to the fact that Garuda Indonesia operates in the service
industry.

We could start by analyzing the protability of Garuda Indonesia in the year 2011
and 2012. The rst Ratio Analysis that we can conduct to analyze Garuda
Indonesia protability level is the Prot Margin Analysis. In 2011, the prot margin
of Garuda Indonesia has a value of 0.0207, but this value has increased in 2012 to
0.0319. This analysis conrms the statement under the Vertical Analysis where the
proportion of Income from Operations towards Total Operating Revenue has
increased between 2011 and 2012. Hence, it is conrmed by this ratio analysis
that Garuda Indonesia has experienced a greater Prot Margin in 2012, in
comparison to 2011.

This then goes on to the Return on Total Asset Analysis. Return on Total Asset
Analysis reects Garuda Indonesias ability to use its asset to generate sales and is
a great indicator of Garuda Indonesias efciency. Since Garuda Indonesia
recorded a higher Net Income in 2012, in comparison to 2011, the Return on Total
Asset has increased from the value of 0.03 in 2011 to 0.05 in 2012. This means
that Garuda Indonesia recorded a greater portion of Net Income towards its
Average Total Asset, and this is a positive indicator for the performance of Garuda
Indonesia.
Page 11

We could now also analyze Garuda Indonesias liquidity indicators, by looking at
their Current Ratio as well as Acid-Test Ratio. Under the Current Ratio Analysis, we
could see that Garuda Indonesia has improved its current ratio analysis that can
be seen by the increase in its current ratio from 0.74 to 0.84. The increase in the
current ratio of Garuda Indonesia shows that Garuda Indonesia have a stronger
liquidity position and that it has better abilities in fullling current obligation and
liabilities. Moreover, we could also take a look at the Acid-Test Ratio analysis
where they have managed to improve their Acid-Test Ratio from a value of 0.49 to
0.61. Acid-Test Ratio assess the most liquid items and this shows that Garuda
Indonesia has a well short-term liquidity position.

Next, we will review Garuda Indonesias solvency performance, through the Debt
to Equity ratio and Time Interest Earned. The solvency test is basically to analyze
Garuda Indonesias ability to cover long-term obligations. Under the Debt to
Equity ratio, Garuda Indonesia has managed to improve its solvency performance.
The Debt to Equity value of Garuda Indonesia in 2011 is 2.26, but it has
signicantly decrease in 2012 to 1.25. This is mainly driven by a greater increase
in the proportion of Total Equity in comparison to the increase in Total Liabilities. A
decrease of Debt to Equity ratio from 2.26 in 2012 to 1.25 in 2011 shows that
Garuda Indonesia has better ability in fullling long-term obligation and this
means that the business is less risky. The Time Interest Earned Ratio is also another
indicator to test Garuda Indonesias solvency performance. This ratio reects the
risk of Garuda Indonesias creditor in loan repayments with interest. In 2011, the
time interest earned for Garuda Indonesia has a value of 4.3 and this value has
increased to 8.49 in 2012. The greater value of this ratio shows that Garuda
Indonesia has greater Income before Tax and Interest to settle its Interest Expense.
This also means that Garuda Indonesia is less risky for creditors to issue loans. This
Page 12
ratio also shows that Garuda Indonesia has a good solvency performance and up
to now, Garuda Indonesia has performed tremendously well.

Last but not least is the Market Prospect Ratio which assess the markets
expectation for Garuda Indonesia and this test could be assessed by using the
Price-Earning Ratio. The Price-Earning Ratio can also be viewed as an indicator of
the markets expected growth and risk for a share. Garuda Indonesias Price
Earning Ratio has decreased from 2011 to 2012 from a value of 10.3 in 2011 to a
value of 8.16 in 2012. The lower Price-Earning Ratio in 2012 in comparison to
2011 shows that the market expects Garuda Indonesia to have higher risk in the
future. This test shows that Garuda Indonesia is expected to be more risky in the
future and this is the only aspect that Garuda Indonesia did not perform well on.

Therefore, we can conclude under the Ratio Analysis that Garuda Indonesia has
performed tremendously well in improving their liquidity, protability and
solvency ratios, however it has a problem in the eyes of the market prospect
where the market sees Garuda Indonesia to be more riskier in the future.
However, overall, Garuda Indonesia has performed well, driven by lower
Operating Expense, higher Income from Operations, lower level of Liabilities and
higher level of Equity.




CHAPTER 3: CONCLUSION
Page 13

In conclusion, we could conclude that in the year 2012, Garuda Indonesia enjoy a
greater amount of Income, due to the reduction in the proportion of Operating
Expense towards Operating Revenues. This fact is also conrmed with the
protability ratio where their Net Prot Margin increases between 2011 and 2012.
Garuda Indonesia also manage to reduce the level of debt (liabilities) that it holds
and increases the level of Equity which results in a better solvency position for the
company. Garuda Indonesias liquidity position also improve which means that
they have better abilities in meeting current obligation. Despite its staggeringly
good performance in 2012, the market sees that Garuda Indonesia will be riskier
in the future and this is shown from the Price-Earning Ratio. However, overall
Garuda Indonesia has created 2012 as their performing year where they have
managed to substantially increase sales as well as income.
Page 14



CHAPTER 4: APPENDICES
A. Horizontal Analysis Calculation
B. Vertical Analysis Calculation
C. Ratio Analysis Calculation

Page 15
4A. HORIZONTAL ANALYSIS

Comparative Income Statement
Accounts 2011 2012 Change (in %)
OPERATING REVENUES
Scheduled Airline Services
$2,580,538,964.00 $2,887,250,744.00
11.9
Non-Scheduled Airline Services
$246,459,221.00 $269,091,577.00
9.2
Others
$269,330,220.00 $316,126,641.00
17.4
Total Operating Revenues
$3,096,328,405.00 $3,472,468,962.00
12.1
OPERATING EXPENSES
Flight Operations
$1,750,918,352.00 $1,908,975,113.00
9.0
Ticketing, Sales and Promotion
$265,239,707.00 $317,443,935.00
19.7
Passenger Services
$261,326,123.00 $263,949,418.00
1.0
User charges and Station
$222,389,175.00 $240,479,502.00
8.1
General and Administrative
$198,258,565.00 $213,737,827.00
7.8
Maintenance and Overhaul
$248,166,721.00 $288,853,664.00
16.4
Transportation operation
$16,282,577.00 $18,290,868.00
12.3
Network Operation
$13,579,030.00 $16,883,310.00
24.3
Hotel Operation
$6,957,658.00 $25,809,070.00
270.9
Other charges - Net
$20,862,909.00 $9,974,151.00
-52.2
Total Operating Expense
$3,003,980,817.00 $3,304,396,858.00
10.0
INCOME FROM OPERATIONS
$92,347,588.00 $168,072,104.00
82.0
Equity in Net Income of
Associates
$1,648,960.00 $1,927,546.00
16.9
Finance Income
$22,738,090.00 $6,755,823.00
-70.3
Finance Cost
-$19,801,370.00 -$25,224,919.00
27.4
INCOME BEFORE TAX
$96,933,268.00 $151,530,554.00
56.3
TAX EXPENSE
-$32,707,732.00 -$40,687,981.00
24.4
NET INCOME FOR THE YEAR
$64,225,536.00 $110,842,573.00
72.6
Accounts
Page 16

Comparative Balance Sheet
OTHER COMPREHENSIVE
INCOME
Gain on Revaluation of Property
and Equipment
$10,145,598.00 $46,729,409.00
360.6
Exchange differences on
Translating Foreign Operations
-$1,167,245.00 -$3,845,700.00
229.5
Related Income Tax
-$503,273.00 -$8,316,974.00
1552.6
Total Other Comprehensive
Income - Net
$8,475,080.00 $34,566,735.00
307.9
2011 2012 Change (in %) Accounts
Accounts 2011 2012 Change (in
%)
ASSET
CURRENT ASSETS
Cash and its Equivalents
$130,951,315.00 $325,784,942.00
148.78
Related Parties
$31,621,930.00 $7,109,221.00
-77.52
Third Parties - Net
$107,797,712.00 $122,361,877.00
13.51
Other Acc. Receivable
$6,252,917.00 $7,877,613.00
25.98
Net Inventories
$67,408,623.00 $83,443,877.00
23.79
Advances and Prepaid
Expenses
$70,416,120.00 $84,809,542.00
20.44
Prepaid Taxes
$7,612,898.00 $5,179,146.00
-31.97
Total Current Assets
$422,061,515.00 $636,566,218.00
50.82
NON-CURRENT ASSETS
Maintenance reserve fund and
security deposits
$244,361,189.00 $461,933,812.00
89.04
Advances for Purchase of
Aircraft
$118,832,859.00 $497,157,419.00
318.37
Investment in Associates
$14,138,616.00 $16,517,489.00
16.83
Deferred Tax Assets
$40,311,170.00 $11,462,857.00
-71.56
Net Property and Equipment
$682,630,571.00 $798,079,135.00
16.91
Investment properties
$19,200,175.00 $18,912,898.00
-1.50
Accounts
Page 17
Intangible Asset
$1,271,320.00 $7,217,106.00
467.69
Deferred Charges
$5,764,998.00 $1,319,027.00
-77.12
Other Assets
$73,024,933.00 $68,831,805.00
-5.74
Total Non-Current Asset
$1,199,535,831.00 $1,881,431,548.00
56.85
Total Asset
$1,621,597,346.00 $2,517,997,766.00
55.28
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Bank Loans
$35,226,303.00 $5,651,251.00
-83.92
Related Parties
$52,299,031.00 $83,773,489.00
60.18
Third Parties
$76,062,105.00 $89,696,142.00
17.92
Other Accounts Payable
$30,948,255.00 $16,669,543.00 -46.14
Taxes Payable
$9,883,820.00 $20,407,652.00 106.48
Accrued Expenses
$131,011,042.00 $169,268,165.00 29.20
Unearned Revenues
$100,400,165.00 $162,270,578.00 61.62
Advances received Current
Maturity of LT Liabilities
$2,026,319.00 $20,417,066.00 907.59
Long Term Loans
$31,515,310.00 $106,125,048.00 236.74
Lease Liabilities
$60,388,440.00 $58,132,590.00 -3.74
Estimated liability for Aircraft
return and maintenance cost
$40,574,018.00 $21,795,528.00 -46.28
Total Current Liabilities
$570,334,808.00 $754,207,052.00 32.24
NON-CURRENT LIABILITIES
Long-Term loans
$179,869,018.00 $294,822,442.00 63.91
Lease Liabilities
$194,422,982.00 $148,220,008.00 -23.76
Estimated liability for Aircraft
return
$23,383,434.00 $30,536,262.00 30.59
Deferred Tax Liabilities
$1,246,717.00 $15,019,898.00 1104.76
Employee Benet Obligation
$154,070,790.00 $152,987,113.00 -0.70
Other Non-Current Liabiliites
$1,608,921.00 $7,244,913.00 350.30
2011 2012 Change (in
%)
Accounts
Page 18
Total Non-Current Liabilities
$554,601,862.00 $648,830,636.00 16.99
EQUITY
Capital Stock
$2,049,030,852.00 $1,146,031,889.00 -44.07
Additional Paid-In Capital
$4,088,301.00 $4,548,037.00 11.25
Other Component of Equity
-$108,485,498.00 -$149,237,597.00 37.56
Stock Option -
$1,148,451.00
-
Retained Earnings
-$1,449,327,706.00 $110,598,370.00 -107.63
Equity atrributable to owner of
the Company
$495,305,949.00 $1,113,089,150.00 124.73
Non-Controlling Interest
$1,354,727.00 $1,870.93 -99.86
Total Equity
$496,660,676.00 $1,114,960,078.00 124.49
TOTAL LIABILITIES AND
EQUITY
$1,621,597,346.00 $2,517,997,766.00 55.28
2011 2012 Change (in
%)
Accounts
Page 19
4B. VERTICAL ANALYSIS
Comparative Income Statement
Accounts 2011 2012 Index 2011 Index 2012
OPERATING REVENUES
Scheduled Airline Services
$2,580,538,964.00 $2,887,250,744.00 83.3 83.1
Non-Scheduled Airline
Services
$246,459,221.00 $269,091,577.00 8.0 7.7
Others
$269,330,220.00 $316,126,641.00 8.7 9.1
Total Operating
Revenues
$3,096,328,405.00 $3,472,468,962.00 100.0 100.0
OPERATING EXPENSES
Flight Operations
$1,750,918,352.00 $1,908,975,113.00 56.5 55.0
Ticketing, Sales and
Promotion
$265,239,707.00 $317,443,935.00 8.6 9.1
Passenger Services
$261,326,123.00 $263,949,418.00 8.4 7.6
User charges and Station
$222,389,175.00 $240,479,502.00 7.2 6.9
General and Administrative
$198,258,565.00 $213,737,827.00 6.4 6.2
Maintenance and Overhaul
$248,166,721.00 $288,853,664.00 8.0 8.3
Transportation operation
$16,282,577.00 $18,290,868.00 0.526 0.527
Network Operation
$13,579,030.00 $16,883,310.00 0.4 0.5
Hotel Operation
$6,957,658.00 $25,809,070.00 0.2 0.7
Other charges - Net
$20,862,909.00 $9,974,151.00 0.7 0.3
Total Operating Expense
$3,003,980,817.00 $3,304,396,858.00 97.0 95.2
INCOME FROM
OPERATIONS
$92,347,588.00 $168,072,104.00 3.0 4.8
Equity in Net Income of
Associates
$1,648,960.00 $1,927,546.00 0.1 0.1
Finance Income
$22,738,090.00 $6,755,823.00 0.7 0.2
Finance Cost
-$19,801,370.00 -$25,224,919.00 -0.6 -0.7
INCOME BEFORE TAX
$96,933,268.00 $151,530,554.00 3.1 4.4
TAX EXPENSE
-$32,707,732.00 -$40,687,981.00 -1.1 -1.2
Accounts
Page 20


Comparative Balance Sheet
NET INCOME FOR THE
YEAR
$64,225,536.00 $110,842,573.00 2.1 3.2
OTHER
COMPREHENSIVE
INCOME
Gain on Revaluation of
Property and Equipment
$10,145,598.00 $46,729,409.00 0.3 1.3
Exchange differences on
Translating Foreign
Operations
-$1,167,245.00 -$3,845,700.00 -0.04 -0.1
Related Income Tax
-$503,273.00 -$8,316,974.00 -0.016 -0.24
Total Other
Comprehensive Income -
Net
$8,475,080.00 $34,566,735.00 0.3 1.0
2011 2012 Index 2011 Index 2012 Accounts
Accounts 2011 2012
ASSET
CURRENT ASSETS
Cash and its Equivalents
$130,951,315.00 $325,784,942.00 10.92 17.32
Related Parties
$31,621,930.00 $7,109,221.00 1.95 0.28
Third Parties - Net
$107,797,712.00 $122,361,877.00 6.65 4.86
Other Acc. Receivable
$6,252,917.00 $7,877,613.00 0.39 0.31
Net Inventories
$67,408,623.00 $83,443,877.00 4.16 3.31
Advances and Prepaid
Expenses
$70,416,120.00 $84,809,542.00 4.34 3.37
Prepaid Taxes
$7,612,898.00 $5,179,146.00 0.47 0.21
Total Current Assets
$422,061,515.00 $636,566,218.00 26.03 25.28
NON-CURRENT ASSETS
Maintenance reserve fund
and security deposits
$244,361,189.00 $461,933,812.00 15.07 18.35
Advances for Purchase of
Aircraft
$118,832,859.00 $497,157,419.00 7.33 19.74
Investment in Associates
$14,138,616.00 $16,517,489.00 0.87 0.66
Accounts
Page 21
Deferred Tax Assets
$40,311,170.00 $11,462,857.00 2.49 0.46
Net Property and
Equipment
$682,630,571.00 $798,079,135.00 42.10 31.69
Investment properties
$19,200,175.00 $18,912,898.00 1.18 0.75
Intangible Asset
$1,271,320.00 $7,217,106.00 0.08 0.29
Deferred Charges
$5,764,998.00 $1,319,027.00 0.36 0.05
Other Assets
$73,024,933.00 $68,831,805.00 4.50 2.73
Total Non-Current Asset
$1,199,535,831.00 $1,881,431,548.00 73.97 74.72
Total Asset
$1,621,597,346.00 $2,517,997,766.00 100 100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Bank Loans
$35,226,303.00 $5,651,251.00 2.2 0.2
Related Parties
$52,299,031.00 $83,773,489.00 3.2 3.3
Third Parties
$76,062,105.00 $89,696,142.00 4.7 3.6
Other Accounts Payable
$30,948,255.00 $16,669,543.00 1.9 0.7
Taxes Payable
$9,883,820.00 $20,407,652.00 0.6 0.8
Accrued Expenses
$131,011,042.00 $169,268,165.00 8.1 6.7
Unearned Revenues
$100,400,165.00 $162,270,578.00 6.2 6.4
Advances received Current
Maturity of LT Liabilities
$2,026,319.00 $20,417,066.00 0.1 0.8
Long Term Loans
$31,515,310.00 $106,125,048.00 1.9 4.2
Lease Liabilities
$60,388,440.00 $58,132,590.00 3.7 2.3
Estimated liability for
Aircraft return and
maintenance cost
$40,574,018.00 $21,795,528.00 2.5 0.9
Total Current Liabilities
$570,334,808.00 $754,207,052.00 35.2 30.0
NON-CURRENT
LIABILITIES
Long-Term loans
$179,869,018.00 $294,822,442.00 11.1 11.7
Lease Liabilities
$194,422,982.00 $148,220,008.00 12.0 5.9
2011 2012 Accounts
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Estimated liability for
Aircraft return
$23,383,434.00 $30,536,262.00 1.4 1.2
Deferred Tax Liabilities
$1,246,717.00 $15,019,898.00 0.1 0.6
Employee Benet
Obligation
$154,070,790.00 $152,987,113.00 9.5 6.1
Other Non-Current
Liabiliites
$1,608,921.00 $7,244,913.00 0.1 0.3
Total Non-Current
Liabilities
$554,601,862.00 $648,830,636.00 34.2 25.8
EQUITY
Capital Stock
$2,049,030,852.00 $1,146,031,889.00 126.4 45.5
Additional Paid-In Capital
$4,088,301.00 $4,548,037.00 0.3 0.2
Other Component of Equity
-$108,485,498.00 -$149,237,597.00 -6.7 -5.9
Stock Option -
$1,148,451.00 0.05
Retained Earnings
-$1,449,327,706.00 $110,598,370.00 -89.4 4.4
Equity atrributable to owner
of the Company
$495,305,949.00 $1,113,089,150.00 30.5 44.2
Non-Controlling Interest
$1,354,727.00 $1,870.93 0.1 0.0
Total Equity
$496,660,676.00 $1,114,960,078.00 30.6 44.3
TOTAL LIABILITIES AND
EQUITY
$1,621,597,346.00 $2,517,997,766.00 100 100
2011 2012 Accounts
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4C. RATIO ANALYSIS CALCULATION

Current Ratio

CR (2011) = Current Asset / Current Liabilities
= 422,061,515 / 570,334,808
= 0.74

CR (2012) = Current Asset / Current Liabilities
= 636,566,218 / 754,207,052
= 0.84

Acid-Test Ratio

ATR (2011) = (Cash + Short-Term Investment + Current Receivable) / Current
Liabilities
= (2,766,623,874) / (570,334,808)
= 0.49

ATR (2012) = (Cash + Short-Term Investment + Current Receivable) / Current
Liabilities
= (463,133,653) / (754,207,052)
= 0.61

Account Receivable Turnover

ART (2011) = Net Sales / Average Account Receivable Net
= 3,096,328,405 / 141510635
= 2.188


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ART (2012) = Net Sales / Average Account Receivable Net
= 3,472,468,962 / 141,510,635
= 2.453

Days Sales Uncollected

DSU (2011) = Account Receivable Net / Net Sales
= (145672559 / 3096328405) x 365
= 0.04 x 365
= 17.172 days

DSU (2012) = Account Receivable Net / Net Sales
= (137,348,711 / 3,472,468,962) x 365
= 14.44 days

Total Asset Turnover

TAT (2011) = Net Sales / Average Total Asset
= 3,096,328,405 / 2,069,797,556
= 1.49

TAT (2012) = Net Sales / Average Total Asset
= 3,472,468,962 / 2,069,797,556
= 1.68

Debt-to-Equity Ratio

DTE (2011) = Total Liability / Total Equity
= 1,124,936,670 / 496,660,676
= 2.26

DTE (2012) = Total Liability / Total Equity
= 1,403,037,688 / 1,114,960,078
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= 1.25

Time Interest Earned

TIE (2011) = Income before Tax and Interest / Interest Expense
= 96,933,268 / 22,301,629
= 4.3

TIE (2012) = Income before Tax and Interest / Interest Expense
= 151,530,554 / 17,847,162
= 8.49


Net Profit Margin

NPM (2011) = Net Income / Net Sales
= 64,225,536 / 3,096,328,405
= 0.207

NPM (2012) = Net Income / Net Sales
= 110,842,573 / 3,472,468,962
= 0.319


Return on Total Asset

RTA (2011) = Net Income / Average Total Asset
= 64,225,536 / 2,069,797,556
= 0.031
RTA (2012) = Net Income / Average Total Asset
= 110,842,573 / 2,069,797,556
= 0.0535

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Price-Earning Ratio

PER (2011) = Market price per Common Share / Earning per Share
= 0.03 / 0.0029
= 10.3

PER (2012) = Market price per Common Share / Earning per Share
= 0.04 / 0.0049
= 8.16


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