OVERVIEW OF VIETJET AVIATION JOINT STOCK COMPANY
Overview of Vietjet Aviation Joint Stock Company
Vietjet Air is Vietnam's pioneering low-cost airline, embracing a new generation airline model that offers a wide range of services tailored to customer preferences Beyond air transportation, the airline enhances consumer experience by utilizing advanced e-commerce technology to meet diverse customer needs for goods and services.
Vietjet, a proud member of the International Air Transport Association (IATA), holds the IOSA Operational Safety Certificate, underscoring its commitment to safety The airline prioritizes a robust safety culture, deeply ingrained in its corporate ethos and embraced by all employees, from leadership to staff across the organization.
• Vietnamese name: VIETJET AIRLINES JOINT STOCK COMPANY
• Enterprise code: 0102325399 issued by Hanoi Department of Planning and Investment for the first time on July 23, 2007, changed for the 27th time on August 1, 2018
• Air transport business license: No 04/2016/GPKDVCHK issued on December 30, 2016
• Listing date on Ho Chi Minh City Stock Exchange (HOSE): February 28, 2017
• Independent Auditor: Branch of KPMG Co., Ltd in Ho Chi Minh City Ho Chi Minh – Vietnam
Line of business
Vietjet's business activities focus on 5 main groups, including:
The Company and its subsidiaries specialize in offering passenger and cargo transportation services across domestic and international routes, along with related support activities and the procurement of aircraft and aircraft parts.
ANALYSIS OF FINANCIAL STATEMENTS OF VIETJET AVIATION
Data source for analyzing financial statements of Vietjet Aviation Joint Stock
- Consolidated financial statements for the quarters of 2019 include:
The financial statements for the first quarter of 2019, covering the period from January 1 to March 31, are prepared in compliance with Circular No 202/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014.
The financial statements for the second quarter of 2019, covering the period from April 1 to June 30, were prepared in compliance with Circular No 202/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014.
The financial statements for the third quarter of 2019, covering the period from July 1 to September 30, were prepared in compliance with Circular No 202/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014.
The financial statements for the fourth quarter of 2019, covering the period from October 1 to December 31, were issued in compliance with Circular No 202/2014/TT-BTC from the Ministry of Finance, dated December 22, 2014.
Consolidated financial statements for the quarters of 2020 include:
The financial statements for the first quarter of 2020, covering the period from January 1 to March 31, have been released in compliance with Circular No 202/2014/TT-BTC, issued by the Ministry of Finance on December 22, 2014.
The financial statements for the second quarter of 2020, covering the period from April 1 to June 30, 2020, have been released in accordance with Circular No 202/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014.
The financial statements for the third quarter of 2020, covering the period from July 1 to September 30, were issued in compliance with Circular No 202/2014/TT-BTC, dated December 22, 2014, by the Ministry of Finance.
The financial statements for the fourth quarter of 2020, covering the period from October 1, 2019, to December 31, 2020, have been issued in compliance with Circular No 202/2014/TT-BTC, dated December 22, 2014, by the Ministry of Finance.
Consolidated financial statements for the quarters of 2021 include:
The financial statements for the first quarter of 2021, covering the period from January 1 to March 31, 2021, have been released in compliance with Circular No 202/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014.
The financial statements for the second quarter of 2021, covering the period from April 1 to June 30, 2021, have been issued in compliance with Circular No 202/2014/TT-BTC, dated December 22, 2014, by the Ministry of Finance.
Analysis of balance sheet
2.2.1 Analysis of the situation of asset fluctuations:
The balance sheet is a consolidated financial statement, which generally reflects the total value of existing assets and the source of capital to form an enterprise's assets at a certain asset
The balance sheet presents a set of indicators that illustrate the status of assets and the sources of capital used to form those assets These indicators are categorized and organized to align with specific management objectives and requirements.
Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020
3 Long-term assets in progress
Graph 2.1 Changes in assets of Vietjet from the first quarter of 2019 to the second quarter of 2021
(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)
In the second quarter of 2019, the company's total assets reached VND 44,460,886,357,649, but experienced a decline in the third quarter to VND 43,146,293,080,207 A notable increase followed in the fourth quarter of 2019, with total assets rising to VND 47,608,358,739,075 However, the first quarter of 2020 saw a slight decrease to VND 46,905,133,409,742, before a strong recovery in the second quarter, where assets climbed to VND 48,392,509,085,938 This growth was short-lived, as total assets fell again in the third quarter of 2020 to VND 45,304,421,406,045 From the fourth quarter of 2020 onward, the company demonstrated consistent growth, with total assets reaching VND 47,088,256,669,717 in Q4 2020 and VND 47,497,810,235,588 in Q1 2021.
Total asset total assets reached a record number in the second quarter of 2021 with 48,620,658,091,886 VND
And to better understand the volatility of the company, we go into detailed analysis of asset items and their impact on the financial position of the company
Graph 2.2 Changes in total short-term assets between the second quarter of 2021 compared to the first quarter and the quarters of 2019 and 2020
(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)
In the second quarter of 2021, the company's total short-term assets reached VND 28,112,440,761,524, reflecting significant fluctuations when compared to the first quarter of 2019 and the years 2019 and 2020 Notably, there was a substantial difference of VND 9,110,348,779,053, marking a 47.96% increase compared to the first quarter of 2019 Additionally, the short-term asset ratio in the second quarter of 2019 was recorded at VND 22,505,968,973,232, indicating a notable shift in the company's asset portfolio over the analyzed periods.
In the second quarter of 2021, short-term assets experienced a decline, dropping to VND 5,606,471,788,292, which represents a decrease of 24.91% compared to the first quarter However, by the third quarter of 2019, the ratio of short-term assets saw a significant increase, reaching approximately VND 7,267,876,022,392, or 34.86% This upward trend was anticipated to continue with fluctuations through the end of 2019 Conversely, by the fourth quarter of 2019, short-term assets fell to VND 1,485,969,315,618, reflecting a decrease of 5.58%.
As of early 2020, the portfolio of short-term assets was approximately VND 22,232,501,052,662, reflecting a figure similar to that of the beginning of Q2 2019 This marked a difference of VND 5,879,939,708,862, while the variance between Q2 2021 and Q2 2019 stood at VND 5,606,471,788,292 In Q2 2020, the difference decreased to VND 3,304,296,403,575, representing a 13.32% decline, but saw an increase in Q3 2020, aligning closely with Q1 2020 at VND 5,561,791,289,712, which accounted for 24.66% However, from Q3 2020 onward, the difference in the short-term asset portfolio gradually diminished, with Q4 2020 showing a decrease of VND 1,945,975,817,892 compared to Q3 2020 and a reduction of VND 3,615,815,471,820 relative to Q2 2021, equivalent to 14.76% By Q1 2021, short-term assets rose to VND 27,353,003,817,452, with the difference from Q2 2021 dropping to VND 759,436,944,072, marking the lowest difference at 2.77%.
Graph 2.3 Movements of cash and cash equivalents over the quarters from 2019 to 2021
(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)
In the second quarter of 2021, cash and cash equivalents reached VND 1,517,051,455,785, reflecting an increasing trend compared to earlier periods Specifically, in the first quarter of 2019, this figure was VND 5,098,305,305,035, showing a decrease of -11.4% by the second quarter of 2021 By the second quarter of 2019, the amount rose to VND 5,265,462,335,773, but unexpectedly dropped to VND 3,168,319,367,301 in the third quarter of 2019, marking a significant decline of -52.11% compared to the second quarter of 2021 However, the fourth quarter of 2019 saw a remarkable increase to VND 6,076,130,859,648, which was still -75.03% lower than the second quarter of 2021 This surge was attributed to Vietjet's addition of nine aircraft, raising its total fleet to 78 by the end of 2019, with a total of 321,000 safe operating hours.
Vietnam Airlines has effectively addressed customer needs by operating 139,000 flights with a seat utilization factor of 87% and achieving a technical reliability rate of 99.64% This positions the airline among the top operators for safety in the Asia-Pacific region, as recognized by Airline Ratings, which awarded Vietnam Airlines a 7-star safety index, the highest possible rating Additionally, the airline's strategy for growth in ancillary revenue, which includes income from extra services, freight, in-flight sales, souvenirs, and advertising, has contributed significantly to its financial success.
At the beginning of 2020, cash and cash equivalents experienced a significant decline over the first three quarters In Q1 2020, this category totaled VND 2,459,284,982,899, reflecting a decrease of VND 3,616,845,876,749 compared to Q1 2019 and a decline of VND 942,233,527,114 from Q2 2021, marking a rate of -38.31% The downward trend continued into Q2 2020, with cash and cash equivalents dropping to VND 2,413,573,361,917, nearly matching the previous quarter's figures and showing a difference of VND -896,521,906,132 compared to Q2 2021, equivalent to -37.14% By Q3 2020, the total further decreased to VND 2,298,775,806,473, continuing the downward trajectory.
In 2021, the difference between cash items and cash equivalents was -781,724,350,688 VND, reflecting a decline of 34% This significant drop can be attributed to the high growth observed in the fourth quarter of 2019, followed by a sharp decline in the first three quarters of 2020 The COVID-19 pandemic severely impacted the global economy, particularly affecting the aviation industry, which experienced a drastic decrease in travel demand Consequently, Vietjet Air suspended all international scheduled flights and reduced its domestic flight operations.
In 2020, Vietjet's cash and cash equivalents portfolio experienced a modest increase, reaching 3,054,995,683,706 VND, which is an uptick of 756,219,877,233 VND from the previous third quarter However, compared to the second quarter of 2021, there was a decline of 1,537,944,227,921 VND, reflecting a rate decrease of -50.34% This growth can be attributed to Vietjet's strategic shift in aircraft configuration for freight transport, enhancing the cargo capacity of its fleet Notably, Vietjet became the first airline authorized by authorities to carry cargo in the cabin.
In the first two quarters of 2021, the cash and cash equivalents portfolio experienced a significant decline, with the first quarter recording a drop to just 2,054,231,746,882 VND, the lowest level in recent quarters This represented a decrease of 537,180,291,097 VND, or 26.15%, compared to the second quarter The primary factors contributing to this decline were a substantial increase in liabilities and the severe impact of the COVID-19 outbreak, particularly in Ho Chi Minh City and the southwestern provinces, which led to reduced travel demand and restricted cargo transportation for Vietjet.
Graph 2.4 Movements of short-term revenues over the quarters in the period of
(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)
In general, short-term revenues tend to increase gradually over the years As of the second quarter of 2021, this item is VND 24,789,364,603,511 Looking at graph 2.4
"Changes in short-term receivables between the second quarter of 2021 and the first
S hort-term receivables quarter of 2021 and the quarters of 2019 and 2020", we can comment as follows: Movement of receivables short-term is 12,230,652,002,429 VND in the first quarter of
In 2021, the difference between the second quarter and the first quarter of 2019 showed a significant increase of VND 12,558,712,601,082, marking a growth rate of 102.68%, which was the highest recorded By the second quarter of 2019, this difference further escalated to VND 15,651,866,716,676, reflecting an increase of VND 3,421,214,714,247 compared to the first quarter of 2019, and a difference of VND 9,137,497,886,835 or 58.38% when compared to the second quarter of 2021 The rise in short-term revenue during this period can be attributed to an increase in short-term loans and other receivables, particularly, other receivables rose by VND 4,829,183,996,780 in the second quarter of 2019 By the third quarter of 2019, this figure slightly increased to VND 16,067,006,684,052, surpassing the second quarter of 2019 by VND 415,139,967,376, yet remaining lower than the second quarter of 2021 by VND 8,722 billion or 54.28% In the fourth quarter of 2019, receivables grew to VND 18,985,742,138,634, driven by an increase in customer receivables of VND 2,713,381,622,640 compared to the third quarter Consequently, the difference between the fourth quarter of 2019 and the second quarter of 2020 was lower than that of the third quarter of 2019 compared to the second quarter of 2021, amounting to VND 5,803,622,464,877, which corresponds to a rate of 30.56%.
In the first quarter of 2020, short-term receivables experienced a slight decrease, totaling VND 18,359,305,350,281 By the second quarter of 2021, this amount had increased to VND 6,430,059,253,230, reflecting a rise of VND 626,436,788,353 compared to the fourth quarter of 2019 Notably, short-term receivables surged again in the second quarter of 2020, reaching VND 20,339,426,388,480, marking the highest level recorded in the previous quarters.
In 2021, short-term receivables decreased to 4,449,938,215,031 VND, reflecting a 21.87% decline compared to the first quarter of 2020 Despite initial expectations for growth, the third quarter of 2020 saw a drop to 18,907,398,112,367 VND, marking a decrease of 1,432,028,276,113 VND from the previous quarter However, by the second quarter of 2021, short-term receivables surged by 5,881,966,491,144 VND, a 31.1% increase The fourth quarter of 2020 recorded a slight rise to 19,907,228,134,374 VND, with a 24.52% difference from the second quarter of 2021 In the first quarter of 2021, receivables reached 23,069,700,170,412 VND, showing the lowest difference of 7.58% compared to the second quarter of 2021 The increase in other receivables, which rose from 9,986,988,481,423 VND in Q4 2020 to 14,882,986,870,318 VND in Q2 2021, indicates that larger receivables can hinder capital efficiency for enterprises To mitigate risks and enhance debt recovery, companies must implement strategies that protect their financial health Further analysis will be conducted to explore the impact of short-term receivables on Vietjet's financial situation.
Graph 2.5 Changes in inventory over the quarters in the period of 2019 - 2021
(Source: Table 2.1 Movement of assets from the first quarter of 2019 to the second quarter of 2021)
In the second quarter of 2021, Vietjet's inventory reached 791,016,757,252 product units, reflecting a significant increase compared to the first quarter of 2019, which had 433,738,248,016 units This represents a rise of 357,278,509,236 units, or 82.37% The inventory levels for the subsequent three quarters of 2019 were 609,426,772,775, 589,575,595,705, and 683,568,930,196 units, showing relatively minor fluctuations The differences between the second quarter of 2021 and these quarters were 181,589,984,477 units (29.79%), 201,441,161,547 units (34.16%), and 107,447,827,056 units (15.71%), indicating a consistent growth trend in Vietjet's inventory over this period.
Continuing to look at graph 2.5, this item doesn't seem to have changed much In the first quarter of 2020, the inventory category accounted for 686,629,885,804 product
Iventory units, an increase of only 3,060,955,608 product units compared to the fourth quarter of
2019, so the difference in the first quarter of 2020 compared to the second quarter of
Analysis the situation of capital fluctuations
Capital serves as the foundation for assets, making it essential to analyze both asset and capital fluctuations, along with individual capital components This analysis provides insights into the level of financial independence and enhances the assessment of a business's financial capacity.
Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021
Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-20
Graph 2.15 "Variations of equity over the quarters in the period of 2019 - 2021"
(Source: Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021)
The company's equity has experienced significant fluctuations over the quarters, notably peaking at 17,005 billion dong in the second quarter of 2021 By comparison, the equity stood at 15,507 billion dong, reflecting a decrease of 1,498 billion dong or 8.8% from the previous quarter In 2019, the equity figures varied as well, with values of 15,622 billion dong in the second quarter, 14,847 billion dong in the third quarter, and 15,314 billion dong in the fourth quarter, highlighting the company's dynamic financial landscape.
In the first quarter of 2020, the company's equity dropped to VND 13.753 billion, marking the lowest figure across all quarters This amount is significantly lower than the second quarter of 2021, showing a difference of VND 3,251 billion, which accounts for 19.12% of the latter's equity An analysis of the graph from the second quarter of 2020 to the first quarter of 2021 reveals that the company's equity fluctuated continuously, with relatively minor differences between the quarters.
In general, the company's equity has different changes over the years, especially the company's equity capital peaked at VND 17,005 billion in the second quarter of 2021
This shows us that: The financial position of the company is being improved by investors' efforts to compensate for capital, not because of increased profit after tax.
Table: Movement of vertical capital from the first quarter of 20129 to the second quarter of 2021
1.1 Short-term payable to the seller 17353% 24230% 13016% 29643% 64955% 60724% 119285% 96891% 97471%
1.2 Buyer pays short-term advance 17204% 15120% 20959% 14072% 16755% 12507% 17338% 16414% 12743%
1.3 Taxes and other payables to the State 6312% 6693% 12362% 8625% 6482% 6875% 8015% 6338% 6975%
1.7 Payable according to the construction contract schedule 0% 0% 0% 0% 0% 0% 0% 0% 0%
1.10 Borrows and short-term financial leases 156335% 164370% 188019% 171382% 142277% 127982% 192380% 215124% 198999%
1.14 Transaction of buying and selling Government bonds 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.1 Long-term payables to suppliers 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.2 Long-term prepayment by buyers 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.4 Internal payable for working capital 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.5 Long-term internal long-term payables 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.8 Loans and long-term financial lease debt 13587% 12263% 26439% 76956% 79299% 75164% 37796% 28607% 34007%
2.12 Provision for long-term payables 219994% 214687% 225089% 192601% 249180% 243268% 202842% 197439% 189058%
2.13 Science and Technology Development Fund 0% 0% 0% 0% 0% 0% 0% 0% 0%
- Common shares with voting rights 0% 0% 125529% 113764% 115470% 111920% 119549% 0% 0%
- Accumulated undistributed NPAT at the end of the previous period 0% 0% 85327% 88614% -21093% 1512% -20422% 0% 0%
12 Source of investment capital for construction 0% 0% 0% 0% 0% 0% 0% 0% 0%
2 Funding sources and other funds 0% 0% 0% 0% 0% 0% 0% 0% 0%
2.2 Sources of funding for the formation of fixed assets 0% 0% 0% 0% 0% 0% 0% 0% 0%
III - TOTAL LIABILITIES AND OWNERS’EQUITY 0% 0% 0% 0% 0% 0% 0% 0% 0%
(Source: Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021)
Graph 2.16 “The situation of vertical capital fluctuations in the period from the first quarter of 2019 to the second quarter of 2021”
(Source: Table 2.2.2.1 The situation of capital fluctuations from quarter I/2019 to quarter II/2021)
From the first quarter of 2019 to the second quarter of 2021, data reveals a notable trend in vertical capital fluctuations Specifically, since the first quarter of 2020, there has been a gradual decline in the proportion of liabilities, accompanied by a steady increase in the proportion of equity This shift indicates a significant change in the financial structure during this period.
The ratio of liabilities to total capital in the first quarter of 2021 compared to the first quarter of 2021 decreased from 69.25% to 65.02%, compared to the second quarter of
In the second quarter of 2021, Vietjet reported a liability proportion that is 4% lower than 2020 and the lowest since the second quarter of 2019, surpassing only the first quarter of that year This decline is attributed to effective cost management strategies, including innovative programs and cost-saving solutions, resulting in a 71% reduction in average operating costs per flight hour and a 30% decrease in selling and administrative expenses compared to the previous year.
In the latest quarter, liabilities and equity from finance lease loans and debts decreased by 3%, with a notable decline in short-term finance lease loans and debts during the first half of the year, followed by a gradual increase towards year-end Short-term unrealized revenue also fell by 0.8% from the previous quarter, 1.92% year-over-year, and 4.17% compared to two years ago Government initiatives aimed at reducing costs and supporting the aviation sector contributed to a 0.17% reduction in the proportion of taxes and payables to the state compared to the previous quarter, and a 0.18% decrease year-over-year The ongoing pandemic has restricted flight numbers, resulting in a 0.17% decline in short-term prepaid bookings from the previous quarter, a 0.15% drop year-over-year, and a 0.4% decrease compared to two years ago Additionally, the proportion of other short-term payables, including those owed to suppliers, has been affected.
43 received, dividends payable to shareholders and other payables, down 6.3% q o q, 2.2% y-o-y and 4.4% y-o-y
Owner's equity experienced a decline from early 2019 to Q1 2020, followed by a gradual increase until Q2 2021, primarily due to the sale of nearly 17.8 million treasury shares, which generated approximately VND 2.35 trillion This transaction helped recover the proportion of treasury shares from negative figures in previous quarters to positive values in Q2 2021, thereby boosting charter capital and the number of outstanding shares while enhancing cash flow for the business Amid the challenges posed by the Covid-19 pandemic, the company diversified its revenue sources to adapt Notably, the undistributed after-tax profit in Q2 2021 constituted 23.32%, whereas cash and cash equivalents were only 3.1%, indicating a concerning level of capital appropriation that could negatively impact operational efficiency To ensure sustainable growth, businesses must effectively manage their cash flow.
- General comments on the company's capital situation from the first quarter of 2019 to the second quarter of 2021
Over the past year, the company's debt ratio has gradually decreased, indicating effective cost management and supportive state policies The airline has implemented cost-cutting measures, and while equity proportions declined from Q1 2019 to Q1 2021, they rebounded in Q2 2021 due to the company's treasury stock offering policy, which provided essential funding for business operations.
From the first quarter of 2019 to the second quarter of 2021, the company's liabilities to equity ratio consistently exceeded 1, indicating that its assets were primarily financed through debt rather than equity.
Analysis of Income sheet
Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021
Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020 Quarter 1-2021 Qu
8 Profit, loss or loss in joint ventures or associates
11 Net profit from business activities
18.2 Profit after tax of the parent company
The income statement reflects the flow of capital in the production and business processes, highlighting the balance between revenue and expenses for each accounting period This report encapsulates the performance and outcomes of production activities by type, along with the company's compliance with state obligations It offers insights into the utilization of capital, labor, technology, and management effectiveness Below is the business performance report for Vietjet Air Joint Stock Company for the years 2019, 2020, and 2021.
2.3.1.1 Gross Revenues from Sales and Services Rendered:
Graph: The situation in gross profit between quarters in the period of 2019-2021
(Source: Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021)
In the second quarter of 2021, gross revenues from sales and services experienced a significant loss of approximately 1.28 trillion VND, marking a decline of 157% compared to the first quarter of 2019, which had revenues of about 3.52 trillion VND When compared to the second quarter of 2019, gross profit plummeted by 2.48 trillion VND, reflecting a 206% decrease Additionally, there was a reduction of 3.34 trillion VND, or 162%, when compared to the third quarter of 2019 The gross profit recorded in the fourth quarter of 2019 was around 1.32 trillion VND, indicating that the second quarter of 2021 faced a loss of approximately 2.60 trillion VND, equating to a 196% decline relative to that period.
Net Revenues From Sales And Services Rendered
Gross Revenues From Sales And Services Rendered
Through analysis, it shows that in 2019, the company's situation is good, net revenue between quarters has increased compared to the second quarter of 2021
In the second quarter of 2020, net profit was significantly impacted by the initial Covid-19 pandemic outbreak in Vietnam, resulting in a loss of 108,925,176,399 VND, although this was still an improvement compared to the second quarter of 2021, which recorded a profit of 1,168,641,307,376 VND, marking a 1073% increase The third quarter of 2020 saw continued economic challenges, with profits at 665,603,441,246 VND, still surpassing the second quarter of 2021 by 109% However, by the fourth quarter of 2020, profits rose to 1,771,660,601,974 VND, reflecting a recovery in the economy.
In the first quarter of 2021, the ongoing complexities of the COVID-19 pandemic led to a significant profit decline, resulting in a loss of -1,013,746,142,834 VND However, there was a slight recovery in the second quarter with profits reaching 263,820,340,941 VND, marking a 26% increase The fourth wave of COVID-19 in Vietnam has notably impacted the company's financial performance, with net sales and the cost of goods sold being the primary factors influencing net profit Therefore, a detailed analysis of these components is essential.
- Net Revenues from Sales and Services Rendered:
The company's business results tended to increase and decrease unevenly over each quarter of the years
The "Income Sheet" graph illustrates significant fluctuations in net revenue throughout 2019 In the first quarter, net revenue reached VND 13,636,768,648,167, representing 74%, but declined to VND 12,664,237,887,158, or 72%, in the second quarter By the third quarter, it rebounded to VND 13,577,576,074,250, maintaining around 74%, and continued to rise in the fourth quarter to VND 13,925,759,710,091, approximately 75% Despite these variations, Vietjet upheld its leadership in both the domestic and international transportation sectors, achieving a remarkable 25% increase in passenger transportation revenue, totaling VND 10,500 billion.
2019, it can be said that at a stable level, financial and other revenue also fluctuated with an increasing trend
In 2020, the pandemic significantly affected businesses, including Vietjet, leading to a drastic decline in net revenue In the first quarter, revenue reached 7.23 trillion VND, which was 51% of pre-pandemic levels By the peak of the epidemic in the second quarter, revenue plummeted to 4.97 trillion VND, representing just 29% The downward trend continued into the third quarter, with revenue falling to 2.81 trillion VND, equivalent to 26% Although there was a slight recovery in the fourth quarter, with revenue rising to 4.43 trillion VND, this still marked a 68.1% decrease compared to the same period in 2019, and revenue from passenger transport was only one-fifth of previous levels.
In the fourth quarter of 2020, the total revenue from various sources, including VND 1,727 billion from core operations, VND 1,219 billion from aircraft ownership transfer and trade-ins, and VND 386 billion from other income, experienced a significant decline compared to the same period in 2019 Despite this downturn, financial revenue saw a notable increase of 32.2% in 2020.
2019, reaching VND 1,032.5 billion, after deducting expenses, Vietjet's net profit from business activities was still negative VND 2,395 billion while last year reached VND 2,395 billion 3,847 billion
In 2021, Vietjet aimed for a revenue target of VND 21,900 billion, achieving nearly 35% of this goal by the end of the first half, with net revenues of VND 1,013,746,142,834 and VND 1,277,566,483,775 in the first two quarters This marked an increase of VND 1,428,040,886,227, or 28.73%, compared to the same period in 2020 Prior to the emergence of the fourth wave of COVID-19 in late April, Vietjet had set an ambitious revenue target of VND 32 trillion and a consolidated profit after tax of VND 1,000 billion However, due to the surge in daily infections, the airline's focus shifted to merely breaking even for the year.
Based on the graph, we see that the cost of providing services in the first quarters of
The cost of service provision in the second quarter of 2021 amounted to VND 4,819,342,749,553, reflecting a decrease of VND 6,571,598,853,198 compared to the first quarter Notably, the costs for the years 2019, 2020, and 2021 were all higher than those recorded in the second quarter of 2021.
In 2019, the cost of goods sold reached 58%, but by the first quarter of 2020, it had decreased by approximately 3.25 trillion VND, equating to about 57.94% Although the first quarter of 2021 showed low figures, it was still 5% higher than the second quarter of 2021, amounting to 243.05 billion VND The rise in costs during 2019 and 2020 was attributed to elevated selling and administrative expenses.
Gross Revenues From Sales And Services Rendered
Gross profit margin on net sales
(Source: Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021)
The analysis of business ratios reveals that Vietjet experienced a significant decline in performance, with negative percentages recorded from Q1 2020, peaking at -36.07% in Q2 2021, primarily due to the impact of the pandemic and intense competition among airlines In contrast, the ratios in 2019 were stable, with Q1 2019 achieving the highest rate of 16.47% Additionally, Q4 2020 showed a notable recovery, reaching 11.15%, attributed to the positive economic rebound following the epidemic.
2.3.1.2 Net profit from operating activities:
Graph “The fluctuation of net profit between quarters in the period of 2019-2021”
(Source: Table of data analyzing business results from the first quarter of 2019 to the second quarter of 2021)
Net profit from operating activities
Net profit from operating activities
The graph illustrates that net profit from operating activities experiences significant fluctuations between quarters; however, overall trends show a general pattern during the first quarter of the observed period.
From 2019 to the second quarter of 2021, the company's performance showed a significant decline, particularly due to the effects of the Covid-19 pandemic on the aviation industry In early 2021, Vietjet faced substantial challenges, resulting in a net profit of only VND 10 billion in the second quarter of 2021 This figure marked a staggering decrease of VND 1,636 billion compared to the first quarter of 2019, reflecting a decline of approximately 99.38%.
In 2019, the financial figures showed a decline to VND 731 billion in the second quarter, marking the lowest point of the year, yet still surpassing the VND 721 billion recorded in the second quarter of 2021 However, by the third quarter of 2019, profits surged to VND 1,908 billion, an impressive 187.4 times greater than the second quarter of 2021 Although the fourth quarter of 2019 saw a drop in net profit to VND 797 billion, it remained significantly higher than the mere VND 10 billion reported in the second quarter of 2021.
By 2020, net profit experienced significant volatility due to the Covid-19 pandemic, which led to widespread cancellations of domestic and international flights Despite high operational costs, quarterly profits plummeted, reaching a record low of negative 971 billion dongs in the first quarter, a 9.637% decline compared to the second quarter of 2021 However, by the second quarter of 2020, net profit showed signs of recovery, rebounding to VND 625 billion, marking a remarkable increase of 61.4 times from the previous quarter.
Analysis Statements of Cash Flows
Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021
Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quater 2-2020 Quarter 3-2020 Quarter 4-2020
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financial activities
Net cash flow for the year -2,064,228,213,010 163,356,983,886 -3,975,146,553,091 -1,173,692,272,844 -2,874,893,537,056 -3,088,753,942,809 -3,190,175,498,356 -2,447,126,520,713 Cash and cash equivalents at the beginning of the year
2.4.1 Net Profits from Operating Activities
Graph Net Profits from Operating Activities
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
Through graph 2.19, we see that the Cash Flow Statement of the business from business activities has irregular fluctuations and is always negative:
In the first quarter of 2019, this item was not recorded Through the second quarter of
In 2019, the portfolio recorded a value of -1,162 billion VND, which decreased by -2,777 billion VND, or 238.98%, compared to the second quarter of 2021 By the third quarter of 2019, the portfolio further declined to -2,335 billion VND, reflecting a drop of 1,173 billion VND from the previous quarter and a difference of -1,603 billion VND, equivalent to 68.65% compared to the second quarter of 2021 However, in the fourth quarter of 2019, there was a positive shift, with the portfolio increasing by 1,259 billion VND from the third quarter, bringing it closer to the second quarter of 2019 at -1,076 billion VND This still represented a significant difference of -2,862 billion VND compared to the second quarter of 2021, amounting to an increase of 265.98%.
After the fourth quarter of 2019, this category tends to decrease sharply until the end of the fourth quarter of 2020 Specifically, in the first quarter of 2020, cash flow from
Vietjet Air's net profits from operating activities were significantly negative, recording -2,008 billion dongs, a decline of 931,946 million dongs compared to Q4 2019 and -1.930 billion dongs compared to Q2 2021, representing a 99.11% drop In Q2 2020, the figure slightly decreased to -2.071 billion dongs, down 62,605 million dongs from Q1 2020, and -1.868 billion dongs compared to Q2 2021, reflecting a 90.19% difference The third quarter of 2020 saw a drastic decline to -3,713 billion dongs, a decrease of 1,642 billion dongs from Q2 2020 and 1,377 billion dongs from Q3 2019, with a 6.08% difference from Q2 2021 By Q4 2020, cash flow from operating activities hit its lowest at -4.897 billion dongs, down 3,820 billion dongs from Q4 2019, further exacerbating the financial strain on the business due to stagnant capital and increased costs The ongoing decline in cash flow throughout 2020 was largely attributed to the severe impacts of the pandemic, which restricted travel and complicated freight transport However, in Q1 2021, there was a notable improvement, with cash flow rising to -405,684 million dongs, the highest in all quarters, up 4,492 billion dongs from Q4 2020 and 1,603 billion dongs from Q1 2020, indicating a more positive cash flow trend compared to previous years.
Table 2.10 Cash Flow Ratio Analysis:
Quarter Total net profit before tax Cash flows from operating activities
Ratio of cash flows from operating activities to profit before tax I/2019 1,647,514,447,442
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
The ratio of cash flow from operating activities to pre-tax profit has generally been negative across most quarters, with a gradual increase observed over time The peak was recorded in the first quarter of 2020, while the lowest point occurred in the second quarter of 2019 Notably, the second quarters of 2019, 2020, and 2021 showed a consistent upward trend, starting at -64.55% in 2019, improving to -50.15% in 2020, and further rising to -0.56% in 2021 Similarly, the third quarters of these years also exhibited a gradual increase in this ratio.
In 2019, the ratio of cash flow from business activities to profit before tax was -81.89%, but by the third quarter of 2020, it had improved significantly to 25.07% The fourth quarter of 2020 also showed positive growth, rising from -74.74% in the fourth quarter of 2019 to -20.53% Notably, the second quarter of 2021 recorded one of the highest ratios in three years, surpassed only by the first and third quarters of 2020.
2019 is quite low, which shows that the enterprise is misappropriating capital and receivables showing signs of stagnation But in 2020 and 2021, the situation gradually improves and becomes more stable.
Criteria Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-20
Net cash flows from operating activities 0.00% -22.07% -73.73% -17.72% -81.68% -85.82% -161.55% -160.32%
Cash flows from investing activities -48.40% 19.52% -77.93% -57.54% 26.87% 40.78% 83.50% 91.17%
Cash flows from financial activities 29.64% 5.65% 26.19% 55.94% -62.10% -82.94% -60.73% -10.96%
Net cash flow for the year -40.49% 3.10% -125.47% -19.32% -116.90% -127.97% -138.78% -80.10%
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
Looking at Table 2.11, we see that every quarter has a negative weight in Net Profits from Operating Activities each year:
In the second quarter of 2021, Vietjet Air reported a staggering -259,680%, significantly worse than the -31% in Q2 2020 and -22.07% in Q2 2019 The first quarter of 2021 also showed a decline at -19.75%, reflecting an -81.68% drop from the previous year The third quarter of 2020 saw a -161.55% decrease compared to -73.73% in Q3 2019, while the fourth quarter of 2020 recorded -160.32%, down from -17.72% in Q4 2019 These figures indicate that the company increased its expenditures despite a downturn in business activities compared to 2019, largely due to the severe impact of the Covid-19 pandemic on revenue The cash flow report revealed a negative cash flow from operating activities of VND 4,897 billion, up from VND 2,026 billion the previous year To generate funds, Vietjet Air liquidated fixed and long-term assets for VND 2,137 billion, a transaction not recorded in 2019 Consequently, net cash flow from investing activities improved to VND 2,785 billion, compared to a negative VND 3,100 billion the prior year, with cash and cash equivalents totaling VND 3,054 billion at year-end.
2.4.1 Cash Flow from Investing Activities:
Graph “Cash flow fluctuations from investment activities in the first quarter of
2019 to the second quarter of 2021”
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
In the fourth quarter of 2020, the net cash flow reached its peak at VND 2,785 billion, primarily driven by the liquidation and sale of fixed and long-term assets, as well as the withdrawal of lending and resale of debt instruments from other entities In contrast, expenditures on lending and purchasing debt instruments were minimal This figure exceeded the net cash flow of the second quarter of 2021 by over VND 2.8 trillion, highlighting a significant increase in investment activity during that period.
In 2021, the company experienced a significant net cash flow deficit of 41 billion VND, primarily driven by substantial expenditures on the procurement and construction of fixed and long-term assets, totaling 68,642,691,889 VND This high spending was contrasted by a meager collection of loan interest, which amounted to only 21,690,016,647 VND—less than one-third of the expenses—resulting in a negative cash flow for the quarter.
I/2019 II/2019 III/2019 IV/2019 I/2020 II/2020 III/2020 IV/2020 I/2021 II/2021
Net cash flow from investing activities
Net cash flow from investing activities
In the second quarter of 2021, the company's net cash flow, while negative, did not reach the extreme lows experienced in the fourth quarter of 2019, when significant investments were made in aircraft and cash deposits This resulted in a record low cash flow of negative VND 3,496 billion Additionally, there were two other instances of lower net cash flow, specifically in the first and third quarters of 2019, both recording negative levels close to VND 2.5 trillion.
In the second quarter of 2021, the company experienced negative net cash flow, a decline of over 1 trillion VND compared to the same period in 2019 and 2020 This downturn was largely due to the outbreak of the epidemic, which posed significant challenges to investment efforts However, despite the immediate setbacks, the negative cash flow in this quarter is expected to yield long-term benefits for the company’s future growth.
In 2019 and the first quarter of 2020, net cash flow reached notably high levels; however, it declined to a negative figure in the subsequent quarter When comparing the second quarter of 2021 to the previous quarter, the change is less pronounced than in other periods, though it is 30.56% higher than the second quarter of 2020 Notably, the first quarter of 2021 still reported a negative cash flow of 28 billion.
Graph of Cash Flow Analysis from quarter I/2019 to quarter II/2021
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
The chart reveals that a significant portion of the enterprise's net cash flow structure is derived from investing activities, highlighting its substantial impact on the business's cash sources and overall potential.
I/2019 II/2019 III/2019 IV/2019 I/2020 II/2020 III/2020 IV/2020 I/2021 II/2021
Net cash flow from operating activities Net cash flow from investing activities
Net cash flow from financing activities
Table Component breakdown of net cash flows from vertical investing
Quarter Money spent to purchase and build fixed assets (1)
Money spent on lending, buying debt instruments of other entities (2)
Loan recovery, resale of debt instruments of other entities (3)
Loan interest income, dividends and distributed profits (4)
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
2.4.3 Cash Flow from Financing Activities
Graph 2.22 Cash flow structure from the first quarter of 2019 to the second quarter of 2021
(Source: Table 2.9 Summary of cash flow statement for the period from the first quarter of 2019 to the second quarter of 2021)
The "Cash Flow Basis" graph indicates a positive cash flow in financial activities from Q1 to Q4 of 2019 This reflects the company's working capital management and its obligations to capital providers In Q1 2019, the cash flow from operating finance was VND 1,511,245,426,891, which decreased to VND 297,402,096,150 in Q2 but remained positive This figure gradually increased to VND 829,847,284,893 in Q3 and surged to VND 3,399,284,992,313 by Q4 2019.
In the first quarter of 2020, cash flow values turned negative and remained so until the first quarter of 2021 This decline can be attributed to a reduction in capital mobilization from providers, likely due to the business increasing its reliance on internal funding and a decreased need for external financing during this period Specifically, data from the first quarter of 2020 indicates a significant drop in cash flow value.
Operating Cash Flow Cash Flow from Investing Activities Cash Flow from Financing Activities
In the second quarter of 2020, the financial situation recorded a deficit of 1,527,101,145,475 VND, which deepened to -2,001,770,696,222 VND in the third quarter However, by the end of the fourth quarter of 2020, the situation showed signs of improvement, with the deficit narrowing to -334,694,259,294 VND The first quarter of 2021 continued this trend, albeit still negative at -383,977,918,943 VND, before making a significant recovery in the second quarter of 2021, reaching a positive value of 2,689,943,414,895 VND.
- General comments on the company's cash flow position:
In 2019, the company's cash source focused on business and investment activities
In 2020, as the air transport industry faced a decline in cash flow, Vietjet Air strategically opted to transfer its investment portfolio and certain accumulated assets This decision aimed to concentrate capital and resources, positioning the airline for a robust recovery when the aviation sector rebounds.
Analysis of financial ratios
Table 2.13 Analysis of financial indicators
Quarter 1-2019 Quarter 2-2019 Quarter 3-2019 Quarter 4-2019 Quarter 1-2020 Quarter 2-2020 Quarter 3-2020 Quarter 4-2020
Ability to pay short- term deb
Ability to pay short- term deb 1.204838826 1.232658957 1.226785198 1.408347086 1.288283415 1.414198965 1.129661788 1.166891393
The ability to pay quickly 1.177337398 1.199280462 1.192086339 1.37219125 1.248495994 1.370822433 1.09560345 1.134186999
Graph 2.23 Changes in liquidity ratio, quick ratio, and instant ratio in the period of 2019 - 2021 of Vietjet
(Source: Table 2.13 Analysis of financial indicators) 2.5.1.1 Liquidity ratio:
Through the data table, we see that the short-term solvency of the second quarter of
In the second quarter of 2021, the short-term debt coverage ratio improved to 1.65, indicating that for every 1 dong of short-term debt, there are 1.65 dongs in short-term assets This marks a 17.02% increase from 1.41 in the same period of 2020 and a 34.14% rise from 1.23 in the second quarter of 2019 The increase in short-term assets, which reached their peak in Q2 2021, contrasts with the fluctuating trend of liabilities, which saw a significant decrease of VND 5,148 billion compared to the first quarter of 2021, despite an overall increase of VND 4,896 billion from Q1 2020 to Q1 2021.
The company's short-term debt solvency ratio exceeds 1, attributed to consistent growth in short-term assets while experiencing fluctuating short-term debt levels Notably, from 2019 to 2021, there has been a downward trend in short-term debt during the second quarter In Q2 2021, short-term liabilities amounted to approximately 17,005 billion VND, reflecting a comparison to the same period in the previous year.
- the second quarter of 2020 was about 17,542 billion VND, down 536.929 million
Ability to pay short-term deb of Vietjet
Ability to pay short-term deb The ability to pay quickly Instant payment ability
In the second quarter of 2021, the company's short-term liabilities decreased by approximately 1,252 billion VND, reflecting a -6.58% change from the previous quarter and a total of 18,258 billion VND compared to the second quarter of 2019, which corresponds to a -3.06% decline This reduction indicates that the company maintains a strong financial balance and implements effective policies for managing short-term debt repayment.
Table 2.14 Liquidity Ratio of companies in the same industry
Ability to pay short-term deb Unit Quarter 1-2019 Qu 2-2019 Quý 3-2019 Quý 4-2019 Quý 1-2020 Quý 2-2020 Quý 3-2020 Quý 4
Ability to pay short-term deb of Vietjet Time 1.204838826 1.232658957 1.226785198 1.408347086 1.288283415 1.414198965 1.129661788 1.16689
Ability to pay short-term deb of Vietnam Airline Time 3.09963991 2.877074818 4.119843545 3.77853796 6.042944736 4.63682103 3.62553859 5.2292
Graph 2.24: Changes Liquidity Ratio between 2019 and 2021 of Vietjet and Vietnam Airlines
(Source: Table Liquidity Ratio of companies in the same industry)
In the comparison of short-term debt solvency between Vietjet and Vietnam Airlines, significant differences emerge As of the second quarter of 2021, Vietnam Airlines demonstrated a short-term debt solvency ratio of 6.36, markedly higher than Vietjet's 4.71, reflecting a solvency rate of 58.36% This indicates that Vietjet's financial strength is comparatively weaker, primarily due to fluctuations in short-term debt rather than a decrease in short-term assets Notably, while Vietjet's short-term assets were 3.5 times greater than those of Vietnam Airlines in the same quarter, its short-term debt was an astonishing 17 times higher, resulting in a considerably lower solvency ratio for Vietjet Conversely, Vietnam Airlines benefited from a reduction in short-term debt over the quarters, contributing to its stronger solvency position.
Chart 2.24 illustrates the volatility in short-term debt solvency for Vietnam Airlines, which shows significant fluctuations, while Vietjet maintains a more stable performance Despite this stability, both airlines exhibit an overall trend of change Notably, there was a marked increase in short-term debt solvency during the second quarter of 2021, reaching its peak across all quarters.
Ability to pay short-term deb of Vietjet and
Ability to pay short-term deb of Vietjet Ability to pay short-term deb of Vietjet
Table 2.15: quick ratios off the capabilities of peers
The ability to pay quickly Unit Quarter 1-2019 Quarter 2-
The ability to pay quickly of
The ability to pay quickly of
Graph 2.25 Changes in quick ratio 2019 – 2021 of Vietjet and Vietnam Airlines
Vietjet's quick ratio closely aligns with its short-term debt ratio, reflecting minimal inventory levels typical for an air transportation company that relies on e-commerce technology In Q1 2019, Vietjet's quick solvency ratio was 1.17, indicating that each dong of short-term debt was backed by 1.17 dongs in short-term assets By Q2 2021, this ratio increased to 1.6, the highest recorded from 2019 to Q1 2021, driven by a rise in short-term assets to VND 28,112 billion This trend illustrates the company's stable ability to convert short-term assets into cash with minimal risk.
When evaluating the quick payment ability of Vietjet versus Vietnam Airlines, it is evident that Vietnam Airlines exhibits a significantly higher capacity to meet short-term obligations This is attributed to a consistent decrease in the fluctuation between their short-term accounts and short-term debts, coupled with relatively low short-term liabilities and minimal inventory levels within their total assets.
The ability to pay quickly of Vietjet and Vietnam
The ability to pay quickly of Vietjet The ability to pay quickly of Vietnam Airline
Table 2.16 Cash Ratio off the capabilities of peers
Instant payment of Vietjet Time 0.323261049 0.288391018 0.186468144 0.321383222 0.142505607 0.13758679 0.115155849 0.14552
Graph 2.26 Fluctuations in cash Ratio 2019 – 2021 of Vietjet and Vietnam Airlines
(Source: Table Cash Ratio off the capabilities of peers)
Vietjet's instant solvency index remains low, peaking at just 0.32 in Q1 2019, indicating significant concerns regarding its solvency This suggests that the airline has not effectively managed its cash for short-term loans, leading to challenges in meeting its debt obligations.
The comparison of instant payment capabilities between Vietjet and Vietnam Airlines reveals a significant disparity Vietnam Airlines demonstrates a higher instant payment ability, fluctuating between 8 and 49, with a peak in the second quarter of 2021 In contrast, Vietjet's instant payment ability remains notably low, ranging from 0.1 to 0.3, and showing minimal fluctuations Notably, it reached its lowest point of 0.09 in the same quarter of 2021, indicating that Vietjet is struggling to meet its debt obligations.
- General comments on the company's ability to pay short-term debt:
Vietjet's short-term payment capabilities are weaker compared to its industry peers, though it demonstrates greater stability over time The airline faces challenges with immediate debt repayment, particularly during urgent cash needs or simultaneous debt maturities While Vietjet effectively manages its cash flow to facilitate timely payments, immediate repayment remains a significant hurdle.
Instant payment of Vietjet and Vietnam Airline
Instant payment of Vietjet Instant payment of Vietnam Airline
The company must prioritize short-term investments to effectively utilize its abundant cash reserves, ensuring a steady income stream while simultaneously creating surplus value for sustained growth.
Graph "The volatility of long-term debt solvency ratios for the period of 2019 - 2021"
2.5.2.1 Total-Debt-to-Total-Assets Ratio:
In the second quarter of 2021, the company's liabilities to total assets ratio stood at 65.02%, indicating that a significant portion of the asset value is financed by debt This represents a decrease from 69.02% in the same period of 2020, reflecting a 4% improvement in debt management Additionally, the ratio was slightly lower at 64.86% in the second quarter of 2019, showing a 0.16% decline compared to 2021 Overall, these figures suggest that the company is effectively managing its capital and reducing its reliance on debt.
Vietjet's payables to total assets ratio ranges between 60 and 80, indicating effective use of financial leverage while maintaining liquidity This balance assures investors of the company's ability to meet debt repayment obligations.
LONG-TERM LIABILITY ON LONG-TERM DEBT
The Debt to Total Assets Ratio and Debt to Equity Ratio are crucial metrics for assessing the autonomy of corporate finance In the first quarter of 2019, the company's total liabilities stood at VND 10,108,609,854,655, which increased to approximately VND 13,236,235,007,229 by the second quarter of 2021 This rise in debt levels can be attributed to the significant impact of the epidemic, particularly affecting the aviation industry.
It can be seen that due to the service business, the company has been affected a lot by long- term loans
Table "Total-Debt-to-Total-Assets Ratio of companies in the same industry"
(Source:Compilation author) Graph Total-Debt-to-Total-Assets Ratio of companies in the same industry
Total-Debt-to-Total-Assets Ratio
Debt to Total Assets (vjc) Debt to Total Assets (HVN)
In the second quarter of 2021, Vietjet's liabilities to total assets ratio stood at 65.02%, significantly lower than Vietnam Airlines' long-term liabilities index of 104.49% This reflects a difference of approximately 39.47% Overall, Vietjet consistently demonstrates a lower liability ratio compared to Vietnam Airlines over the same period in previous years Both airlines show minimal fluctuation in their long-term debt repayment capabilities, indicating that Vietjet is effectively managing its long-term debt obligations.