Airbus Financial Statements

We have here the 2009 Balance Sheet.
Something to highlight, on the one hand, may be that fixed assets more than double current assets, possibly due to the need of Airbus’s activity to principally invest in infrastructure, equipment, machinery, etc.
This big amount of fixed assets supposes an important safety net for the company.

On the other hand, due to its large investment in fixed assets, it would be logical that also long term liabilities exceed current liabilities, as they do, more than doubling them.

Finally, what refers to equity, the gap between total assets and total equity in 2008 increased, as equity in 2009 decreased in a bigger proportion than Airbus’s total assets.

From the Income Statement the relevant information to be taken into account (since some numbers are not yet available) is what it is already been said in the Balance Sheet analysis. Since Airbus is mostly producing itself the pieces of the airplanes it has high Materials Expenses in comparison for example with the Costs of Employees, since Airbus provides goods and not services.

This graph is a representation of the evolution of Airbus’s total assets from 2001 to 2009. We can clearly see a smooth and constant total asset growth during the decade, reaching a peak in 2006 and 2007 (of 1.5€ billion), time at which it suffers a constant decrease, surely due to the financial crisis.

The average total assets of the decade is 912.261€ millions.

This graph is a representation of the evolution of Airbus’s shareholders equity from the year 2001 to 2009.
As we see, in the first three years there has been a continuous increase, time at which during the next 3 years equity will maintain more or less around the 200€ millions. From then, in 2007 equity suffers a big growth due at least in part to an increase in net profit and a decrease in losses from the previous year. But now, surely due to the financial crisis, equity decreases again to similar levels than those of 2002 (slightly more than 150€ million).

The average level of equity of the decade is 194.317€ millions.

Airbus Financial Ratios

In the table presented above, we can see the value of the different ratios found of the company, where we can see for example the Current Ratio (Current Assets / Current Liabilities), the Cash or Liquidity Ratio (Cash / Current Liabilities) and the ROA (Net Income / Total Assets).

The Current Ratio is an indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is.In this graph the Current Ratio is being compared for a period of time from 2001 to 2009. We can see that for every year there are positive values with a range that goes from 0.52 (in 2004) to 1.25 (in 2008). We can also see how for the years 2001 and 2002 the value was the same (1.06) but in 2003 the value decreased to a 0.80.

 The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is an approximate measure of a company's operating cash flow based on data from the company's income statement.
In the graph above it is shown the EBITDA for the years 2007, 2008 and 2009. We can see how there are very low values for 2007 surpassing the value of -70,000,000.
In the year 2008 the company is better, as we can see in the graph having a positive value (>0) but in 2009 the situation worsened as it went down to a value of -60,000,000. Even though we are talking about very low values we can still say that the company has improved its situation with respect to the year 2007.

The ROE (Return on Equity) is a measure of how well a company used reinvested earnings to generate additional earnings.
The ROE is calculated dividing the Net Income by the Shareholder Equity, in the graph the years 2007, 2008 and 2009 are the ones being considered, and as the previous graph we can see that in 2007 the ROE had a value below 0 of -14.73, however in 2008 it improved a lot as we got a positive value of 21.18 but in 2009 it worsened again, it got even worse than in 2007 as it got a value of -21.67.

The ROA (Return on Assets) is a measure of a company's profitability.
It is calculated dividing the net income by the total assets, of the years 2007, 2008 and 2009. This graph is related with the previous graphs as we can see that in 2007 and 2009 there are negative values but in 2008 the value obtained was positive. In this case, in 2007 the negative value (-1.22) was a smaller than the one found in 2009 (-1.29)

The Solvency Ratio (after tax profits + depreciation / total liabilities)is the company's ability to meet its long-term obligations. It has been discussed from the year 2001 to the year 2009. In this graph we can see how for every year there are positive values above 15.00% but we can still see a lot of difference between the years with the highest values (2003 à 25.48 and 2007 à 28.46) and the years with lowest values (2001 à 16.95 and 2006 à 16.09). We can also see how from 2007 on it is decreasing very fast falling form a 24.95 obtained in 2008 to a 17.13 for the year 2009.