Common Size (vertical) Analysis 2022

Common size
(vertical) analysis

FINANCE 1
Vertical Analysis of Income Statement
As per the above vertical analysis of Income statement, it is observed that the airline has
91% of operating expenses from the 100% of revenue in the year 2019 and in the year 2018, the
operating expenses of the airline is 92%. It has been seen that the operating expenses has been

FINANCE 2
decreases which directly affects the net income of the year. The percentage of net income has
been increases from 0.2% to 8% from 2018 to 2019. It describes that income of the airline has
been increases due to decreasing operating expenses (Robinson, 2020).
Vertical Analysis of Balance Sheet
Balance Sheet
At the end of the year 2018 2019
Assets
Current
Cash and cash equivalents 642 3% 2090 8%
Short-term investments 3162 15% 3799 14%
Total cash, cash equivalents and short-term
investments 3804 19% 5889 21%
Restricted cash 148 1% 157 1%
Accounts receivable 811 4% 926 3%
Aircraft fuel inventory 91 0% 102 0%
Spare parts and supplies inventory 115 1% 110 0%
Prepaid expenses and other current assets 425 2% 332 1%
Total current assets 5394 26% 7516 27%
Investments, deposits and other assets 402 2% 936 3%
Property and equipment 11827 58% 12834 46%
Pension assets 1583 8% 2064 7%
Deferred income tax 684 3% 134 0%