Can you kindly explain this chart? I don\'t understand it at all! Financial anal
ID: 2538446 • Letter: C
Question
Can you kindly explain this chart? I don't understand it at all!
Financial analysis report for Lufthansa's managers Horizontal analysis The following table shows a horizontal analysis with year 2005 as a base (100%) using the most important figures from the consolidated statement of income, we can find the complete one in the table 1 of the annex. 2.242 0 2007 2006 2005 Total revenue 22420 (124.11% 19849 1078 27 26.47% -33 1045 109.88% Profit from operating activities Financial result Profit/loss from ordinary activities Profit/loss before income taxes Profit from continuing operations Profit from the discontinued Leisure Travel segment Profit after income taxes Net profit attributable to shareholders of Lufthansa AG Basic earnings per share in Diluted earnings per share in 719 102 321 100% 100% 100% 1586 8% 149.93% 1613 1613 1257 196.47% 196.47% 224.87% 949.06% 32.35% 127.28% 127.28% 145.80% 821 559 53 1045 815 1760 1655 (365.34% 3.61 365% 3.6 378.95% 82 154.72% 897 146.57% 803 1.75 176.77% 099 100% 1.75 184.21% 612 100% 177.26% 453 0.95 As we can see since 2005 almost the most important figures extracted from the consolidated statement of income are showing percentages of huge growth, only the financial result has been a percentage inferior to the base. The total revenue has been increased by 24.11% and if we disaggregate this figure we can see that the traffic revenue has growth a 26.35% which is high above the passage growth.Explanation / Answer
This Chart shows some important figures from consolidated statement of income with base year as 2005.
The percentage for the years 2006 and 2007 have been calculated by taking 2005 as the base year.
For eg- For 2007; Total revenue = 22420/18065*100 = 124.11 % ; For 2006 Total Revenue = 19849/18065*100 = 109.88%
Explanation for the Chart- Year 2007
Total Revenue = 22420
Profit from operating activities = 1586 ----(1)
Financial Result = 27 ----(2)
Profit from ordinary activities (Point 1+2) = 1613
Profit before income and taxes = 1613
Profit from continuing operation = 1257 ---- (3)
Profit from discontinued = 503 ---- (4)
Profit after income taxes (Point 3+4) = 1760
Net profit attributable = 1635
Basic EPS = 3.61
Diluted EPS = 3.6
Since it is mentioned in the question, only important figures have been given, figures of profit from extraordinary activities, income tax provision, expenses, No of shares, etc are missing.