Question

vertical analysis of Air canada financial statement 2018-19

Fiscal year is January-December. All values CAD Thousands 2019 2018 Sales/Revenue 486,600,0 454,900.0 Sales Growth 6.97% 18.80% Cost of Goods Sold (COGS) incl. D&A 369,400.0 344,700.0 COGS excluding D&A 275,400.0 278,600.0 Depreciation & Amortization Expense 94,000,0 66,100.0 Depreciation 94,000.0 66,100.0 COGS Growth 717% 24.04% Gross Income 117,200.0 110,200.0 Gross Income Growth 6.35% 4.95 Gross Profit Margin 24.09% SG&A Expense 60,600,0 50,300.0 Other SG&A 60,600.0 50.300.0

Answer 1

Vertical Analysis of Canada Financial Statement 2018-2019:

Missing Figures:

2018

1. Gross Profit Margin: Gross Income/ Revenue x 100

                                   = 110200/454900 x 100

                                   = 24.22%

2. Net Margin: Net Income/ Revenue x 100

   = 20200/ 454900 x 100

   = 4.44%

3. EBITDA Margin: EBITDA/ Revenue x 100

   = 126000/454900 x 100

   = 27.70 v%

4. Pretax Margin: Pretax Income/ Revenue x 100

= 29300/ 454900 x 100

= 6.44%

As we can observe from above given 2019 data in percentage and our solved 2018 data, our margin as compare to last year is low. Many reasons might have been affected the figures of 2019 i.e. Increase in COGS, Increase in number of units sold, Decrease in Gross Profit, Increase in expenses done on sales promotions and many more.