Question: Your task is to conduct a Vertical AND Horizontal analysis of the company DEUTSCHE LUFTHANSA AG over five years from 2012 to 2016 (the analysis
Your task is to conduct a Vertical AND Horizontal analysis of the company DEUTSCHE LUFTHANSA AG over five years from 2012 to 2016 (the analysis is already made as links below) and make conclusions whether its performance has improved over time and whether it performs better than its peers. It will be also beneficial if you use industry ratios.
Income statement: https://drive.google.com/file/d/0By53A7ltkfdgdWM1alFOWEw5NTg/view?usp=sharing
Balance sheet: https://drive.google.com/file/d/0By53A7ltkfdgUm0tb0xJWUVjT2s/view?usp=sharing
It is helpful to think and answer the following questions:
Did the company grow over 5 years and has it been consistent growth? What are the best indicators for overall company growth?
Where the changes are most pronounced and how best to show them?
Are those change trends good news for investors or not?
As there are a lot of numbers, try to select the most important changes and trends and go deeper in understanding them. For example, if net income grew faster than sales, explore why.
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