Your analysis will include a calculation of the following ratios for 2018 and 2019 fiscal years:

1. Profit Margin
2. Debt to Asset Ratio
3. Current Ratio
4. Comment on the Basic Earnings per Share Amount

Please provide a commentary on the result of the ratio or calculation, and your assessment of whether this is a positive or negative.

44 Virgin Australia Group | Annual Report 2019

Consolidated statement of profit or loss

For the year ended 30 June 2019

Note

2019$m Restated(1)2018$m

Revenue and income

Airline passenger revenue 5,317.7 4,981.7

Freight revenue 125.6 105.2

Loyalty program revenue 383.8 330.3

Other income - 3.5

Revenue and income 5,827.1 5,420.7

Operating expenditure

Aircraft operating lease expenses (383.1) (389.0)

Airport charges, navigation and

station operations (1,107.5) (1,060.7)

Contract and other maintenance

expenses (246.0) (246.4)

Commissions and other marketing and

reservations expenses (533.4) (467.4)

Fuel and oil (1,178.5) (985.5)

Labour and staff related expenses (1,346.0) (1,246.7)

Impairment losses on

cash-generating units (152.6) (120.8)

Impairment losses on other assets - ( 47.8)

Onerous contract expenses (47.4) (58.5)

Other expenses from ordinary

activities (592.9) (512.9)

Depreciation and amortisation (373.4) (337.3)

Ineffectiveness on cash flow hedges (0.9) -

Net operating expenditure (5,961.7) (5,473.0)

Share of net profit of

equity-accounted investee - 3.5

Loss before net finance costs and tax (134.6) (48.8)

Finance income 28.5 19.2

Finance costs B4 (189.2) (171.8)

Net finance costs (160.7) (152.6)

Loss before tax (295.3) (201.4)

Income tax expense (20.1) (451.9)

Loss (315.4) (653.3)

Attributable to:

Owners of the Company (349.1) (681.0)

Non-controlling interests F4 33.7 27.7

(315.4) (653.3)

Earnings per share Cents Cents

Basic earnings per share B2 (4.1) (8.1)

Diluted earnings per share B2 (4.1) (8.1)

(1) The comparative has been restated to be consistent with the current financial period revenue presentation which separately presents freight and loyalty program revenue.

The consolidated statement of profit or loss should be read in conjunction with the accompanying notes.

Virgin Australia Group | Annual Report 2019 45

Consolidated statement of profit or loss

and other comprehensive income

For the year ended 30 June 2019

Note

2019$m 2018$m

Loss (315.4) (653.3)

Other comprehensive income

Items that may be reclassified

subsequently to profit or loss

Exchange differences on translation of foreign

operations (nil related tax) 45.2 (0.3)

Effective portion of changes in fair

value of cash flow hedges (37.4) 362.6

Net change in fair value of cash flow

hedges transferred to profit or loss (184.1) (96.3)

Effective portion of changes in fair value

of cash flow hedges (time value of options) (71.9) (6.7)

Net change in fair value of cash flow

hedges transferred to profit or loss

(time value of options) 45.0 45.1

Net change in fair value of cash flow

hedges transferred to initial carrying

value of hedged item - 19.3

Income tax (expense)/benefit on

other comprehensive income 74.5 (97.2)

Other comprehensive profit/(loss), net of tax (128.7) 226.5

Total comprehensive loss (444.1) (426.8)

Attributable to:

Owners of the Company (477.8) (454.5)

Non-controlling interests F5 33.7 27.7

(444.1) (426.8)

The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

46 Virgin Australia Group | Annual Report 2019

Consolidated statement of financial position

As at 30 June 2019

2019$m 2018$m

Current assets

Cash and cash equivalents E2 1,740.0 1,415.5

Receivables C1 268.7 281.6

Inventories C2 51.3 47.6

Derivative financial instruments E7 71.5 220.0

Other financial assets C3 31.2 12.1

Other C4 2.6 2.7

Total current assets 2,165.3 1,979.5

Non-current assets

Receivables C1 182.6 191.6

Derivative financial instruments E7 13.6 64.0

Other financial assets C3 255.7 284.2

Investment accounted for using the

equity method F2 - 8.2

Deferred tax assets B5 57.8 -

Property, plant and equipment D2 3,202.1 3,031.0

Intangible assets D3 580.7 617.0

Other C4 10.4 12.9

Total non-current assets 4,302.9 4,208.9

Total assets 6,468.2 6,188.4

Current liabilities

Payables C5 929.1 807.5

Interest-bearing liabilities E3 771.9 295.1

Derivative financial instruments E7 14.8 6.6

Provisions C6 255.5 269.0

Unearned revenue C7 1,262.7 1,142.1

Other 2.9 3.6

Total current liabilities 3,236.9 2,523.9

Non-current liabilities

Payables C5 2.7 5.6

Interest-bearing liabilities E3 2,256.9 2,273.0

Derivative financial instruments E7 2.8 0.2

Provisions C6 339.8 277.6

Other 10.2 13.1

Total non-current liabilities 2,612.4 2,569.5

Total liabilities 5,849.3 5,093.4

Net assets 618.9 1,095.0

Equity

Share capital E4 2,238.5 2,238.9

Reserves E6 117.6 268.3

Retained earnings (1,766.4) (1,415.8)

Equity attributable to the owners

of the Company 589.7 1,091.4

Non-controlling interests F4 29.2 3.6

Total equity 618.9 1,095.0