Real-Life Case Study: A Flight to a Bankruptcy of Norwegian Air Shuttle

Abstract

This comprehensive case study is aimed at demonstrating an importance of a diligent retrospective and prospective financial statement analysis, in case of businesses that report fast rising revenues and seemingly impressive increases in profitability. It is not uncommon that such an allegedly improving financial performance is to a large extent attributable to some favorable but transitory (short-term) external factors, instead of real achievements and economic efficiency of a given company.

Appendix: Published Financial Statements of Norwegian Air Shuttle for Fiscal Years 2015 and 2016

See Tables 5.31, 5.32, 5.33, and 5.34.

Table 5.31 Consolidated income statement of Norwegian Air Shuttle for fiscal years 2015 and 2016 (as published in the company’s annual report for fiscal year 2016)

Table 5.32 Consolidated balance sheet (Assets) of Norwegian Air Shuttle for fiscal years 2015 and 2016 (as published in the company’s annual report for fiscal year 2016)

Table 5.33 Consolidated balance sheet (Equity and liabilities) of Norwegian Air Shuttle for fiscal years 2015 and 2016 (as published in the company’s annual report for fiscal year 2016)

Table 5.34 Consolidated cash flow statement of Norwegian Air Shuttle for fiscal years 2015 and 2016 (as published in the company’s annual report for fiscal year 2016)