income and loss, additions of non-cash transactions, change in assets and liabilities. Especially Net income and additions of non-cash transactions were the major source that brought about cash in to the company. Cash inflows from financing activities were relatively smaller than that of operating activities, but still added surplus of cash inflows to the company, recording 434,124,157 thousand w
income decreased heavily due to their decrease of gain on foreign exchange. Considering recent trend of weak Korean Won(\) currency, Korean air would probably show similar pattern(low other income and high other expense) or even worse in 2008.
- Overall, both company's level of net earnings is extremely low which means their business is not going well.
Balance Sheet - Common Size
Assets
assets made Naver’s asset amount higher than before with new book value of the land even though it didn’t purchase any land. This result can help Naver have better financial structure but at the same time, it will make Naver pay higher property tax because of increase in asset amount. In addition, upward revaluation overvalues the service provided by the asset in its operational use and maint
Income Margin ratio than GAP. However the difference between both companies’ Operating Income Margin is decreased apparently in 2008.
(2) Additional Measures of Efficiency
Calculation
Sales / Long Term Assets
Abercrombie 2006 2007 2008
3,318,158 / 1,155,989 3,749,847 / 1,427,343 3,540,276 / 1,763,356
2.87040 2.62715 2.00769
GAP 2006 2007 2008
15,923 / 3,515 15,763 / 3,752 14