Westjet Airlines Annual Financial Statement

Darshit Bharadia
N01265668
Annual Financial Statements
1) WestJet Airlines:
Growth and Profitability:
a) Year / Year Revenue growth:(In thousands)
= Current year sales – Previous year sales / Previous year sales * 100
= 4502320 – 4122859 / 4122859 * 100
= 9.20%

Revenue growth measures the company’s sales over the previous years and the current year in this we can see that company’s sales has increased from 4122859 to 4502320, Which is a good indicator for the company.
b) Year / Year Net Profit Growth:(In thousands)
= Current year net income – Previous year net income / previous year net income *100
= 283578 – 295458 / 295458 * 100
= -4.02%

Net profit growth measures the company’s current net profit with the previous year and defines company’s

The higher the rate, the more the association hangs on each dollar of offers, to profit its distinctive costs and commitment responsibilities. 27.28% is a decent marker for the organization.
d) Net profit margin:(In millions)
= Net income / Sales * 100
= 2405 / 6554 * 100
= 36.70%

The net profit speaks to the measure of each dollar accumulated by an association as wage changes over into advantage.
e) Return on Assets(ROA):(In millions)
= Net income / Total assets * 100
= 2405 / 20135 * 100
= 11.94%

Return on Assets (ROA) is a marker of how gainful an association is in regard to its total assets. ROA gives a chief, money related pro, or master an idea regarding how capable an association's organization is at using its points of interest for make salary.
f) Return on equity(ROE):(In millions)
= Net income / Total equity * 100
= 2405 / 6437 * 100
= 37.36%
Return on equity is the measure of net pay returned as a level of speculator's esteem.

Solvency:

a) Working capital:(In millions)
= Net working capital / Total assets
= Net working capital = Current assets – Current liabilities = 1274 – 1984 =

c) Quick ratio:(In millions)
= (Current assets – Inventory) / Current liabilities
= (1274 – 152) / 1984
= 1122 / 1984
= 0.57 times
The quick ratio is a pointer of an association's transient liquidity, and measures an association's ability to meet its temporary responsibilities with its most liquid assets.

Debt:

a) Total debt ratio:(In millions)
= (Total assets – Total equity) / Total assets
= (20135 – 6437) / 20135
= 13698 / 20135
= 0.68 times
The debt ratio is a money related extent that measures the level of an association's utilization.
b) Times interest earned:(In millions)
= EBIT / Interest expenses
= 2793 / 463
= 6.03 times
Times Interest Earned (TIE) is a metric used to evaluate an association's ability to meet its commitment responsibilities.
Efficiency

a) Days sales in inventory:(In millions)
= 365 days / Inventory turnover
= Inventory turnover = Cost of goods sold / inventory = 2950 / 152 = 19.40
= 365 /