COVID-19 – we cannot ignore it II – Qantas

Let’s start with an industry which was impacted by Corona in a negative way: aviation. A typical example would be Qantas. Thinking about the right period and granularity to provide a good comparison between the normal period and the pandemic period, I noticed that Qantas publishes semi-annual reports. Three half-year periods would be good. H1 2019 was quite normal, H2 2019 held the start of the Corona-outbreak in Asia but was quite normal, but H1 2020 was a global disaster and Qantas was hit really hard.Aeroplane Qantas

Photo by skeeze on Pixabay

Because the AnRep3D-generator is freeware now, I will explain the process of the collection of data in more detail this time. Hopefully this will help you if you are a reader who wants to experiment with it.

To fetch the financial information I went to the Qantas Investor Centre and selected the semi-annual and annual reports. The balance-sheets are presenting the fixed situation at the end of the period, but the revenue and cash-flow from operating activities had to be calculated for the second half of the year by subtracting the values of the first half. Normally not a big deal, but Qantas has a broken book-year going from July 1 to June 30. As a result the first half of the year in the calendar is their second half and it took some effort to avoid confusion!

Finally I had the results, but then I realised the $ symbol in an Australian document might represent the AUD instead of the USD. In the report no currencies were explained, only some references to the conversion of USD to AUD. To be sure I went to Wikipedia, where the 2019 amounts for e.g. revenue and equity were presented with A$ in front. Then I knew I had to recalculate to USD. Using the Macrotrends site  I got the appoximate values for the middle of the periods (for Revenue and Cash Flow) and for the end of the periods (Equity and Liabiliies), allowing me to get reasonable USD values.

Qantas preparation sheet

The spreadsheet (see picture above) looked rather complicated. To the top left the (derived) half-year values in AUD were presented, with more to the right the necessary exchange-rates. To the bottom the values were transposed and calculated in USD. After adding a parameter-line to the top of the list (holding the number of companies: 1, number of periods: 3, scaling-factor: 250, additional spacing: 20, font-size:4 followed by the three labels for the legend).

This structure matched the input-file format and the whole sheet was saved as a .csv-file because I was too lazy to copy it to another tab. I just removed the irrelevant lines over the parameter-line in Notepad. As promised this time both input-file (csv – plain text) and output-file (the actual graph in HTML5 – right-click link and choose save link as) are available for download.Qantas finance in 3D

Commenting the 3D-graph is hardly necessary. The revenue dropped sharply in H1 2020 and the liabilities went up. Yet I was surprised to see the high ratio of total liabilities to equity (gearing).

I’m not an expert on finance in aviation, but the buildings look more like a bank or insurance company than a regular service-provider or manufacturer. The fact that the aeroplanes are not owned by the company, but only leased will influence the shape of the building.

For now, don’t forget to download your free copy of AnRep3D at our website. Short tutorials, explaining different parts of AnRep3D are available at our Youtube-channel Follow @AnRep3D on Twitter, to be informed about new posts.

About AnRep3D

AnRep3D is the new company, founded after the handover of Scientassist (together with VRBI) to one of my sons. From now I will focus on three-dimensional graphs for the financial markets, showing the main figures from annual reports in comparison. As per 2021 a second product is available: EnRep3D. It is meant to visualise energy. Although the engine is the same, the texts, manual, website and examples (including blogposts) are focused at energy.
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