This report evaluates the financial performance and position of AMERICAN AIRLINES GROUP INC using ratio analysis, vertical analysis and horizontal analysis techniques. The report concludes that the financial position and performance of AMERICAN AIRLINES GROUP INC is quite competitive and it is recommended to invest in the company for better returns.
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Running Head: Accounting for corporate structure 1 Project Report:Accounting for corporate structure
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Accounting for corporate structure2 Contents Introduction.......................................................................................................................3 Business and industry analysis.........................................................................................3 Analysis of historical financial data.................................................................................4 Ratio analysis....................................................................................................................4 Horizontal analysis...........................................................................................................8 Vertical analysis................................................................................................................8 Analysis of financial performance....................................................................................9 Recommendation and conclusion.....................................................................................9 References.......................................................................................................................10 Appendix.........................................................................................................................12
Accounting for corporate structure3 Introduction: Financial statements of an organization explain about the financial strength, financial position and financial performance of an organization. These statements are prepared by the organization periodically to evaluate the performance of the company in context with the accounting and finance. Financial statement includes statement of financial income, statement of cash flows, and balance sheet and changes in equity statement. For evaluating and analyzing the financial statement of an organization, financial analysis techniques are used. Financial analysis techniques make it simple for the management of the comapny and the stakeholders of the company to evaluate the financial statement and make a proper analysis on the basis of it. Financial analysis techniques include ratio analysis, vertical analysis, horizontal analysis etc. these methods evaluates the financial statements on the various basis (Shapiro, 2005). The report has been prepared to evaluate and analyze the financial performance and position of AMERICAN AIRLINES GROUP INC. For evaluating and identifying the position of the company, ratio analysis, vertical analysis and horizontal analysis techniques have been used. The report makes it simple for the company and stakeholders of the corporation to evaluate the financial performance of the company and make a conclusion about the investment in the company. Business and industry analysis: AMERICAN AIRLINES GROUP INC is an American company which publicly businesses in the airline holding company. Headquarter of the company is at Fort Worth, Texas. The company is the outcome of a merger among AMR Corporation and US airways group. The company is one of the biggest airline firms in the international market. The company is operating its business under aviation industry. Currently, it is serving its services at 350 destinations. Total revenue of the company is US $ 42.207 billion according to the latest annual report. 1,18,500 employees are working in the company. the main competitive company of AMERICAN AIRLINES GROUP INC is southwest airline group. Currently, the company is diversifying its market and focusing on the new destinations to enhance the market base of the company so that more market could be captured (Customer service, 2018). The main mission and vision of the company is to serve the best quality services to its clients as well as expand the market through focusing on the new destinations. The current stock position of the comapny has been evaluated and it has been found that the current stock price of the company is USD 50.90 which is quite higher than its book value (Yahoo finance, 2018). The stock position and the market position of the company are quite competitive and it explains about the better changes in the organization. The future prediction about the stock price of the company explains about the higher stock price from now (History, 2018). Various other competitors are also available in the market for the company such as Delta airlines, JetBlue airways, United continental holdings etc. the current financial trend of the business explains about the few alterations and the company’s performance. Aviation industry of America has also been evaluated and it has been recognized that the industry is operating its business at a significant level. The performance of the company is also better. The porter’s 5 forces model of aviation industry of America is as follows: Competition among existing firms: The competition among the already existing players is quite higher as many large and small companies are offering the services at domestic as well as international level. Thus, the threat of the company is quite higher.
Accounting for corporate structure4 Threat of new entrants: Risk from new entrants is quite lower for aviation industry. As huge investments are required to enter into the industry as well as various regulations is also there. Though, the threat of the company is quite lower. Threat of substitute products: Risk from alternative products is moderate for aviation business. As there is various transportation options are available for the customers. Though, for long travel people relies on the aviation industry (Gitman and Zutter, 2012). Bargaining power of suppliers: There are a large number of suppliers which caters to the airline industry. The suppliers of America hardly have any bargaining power. Overall, the bargaining power of suppliers is quite low (Annual report, 2017). Bargaining power of customers: There is a great integer of customers which takes services from the airline industry. The customers of America usually take the help of airlines to travel from one place to other. Overall, the bargaining power of customers is quite low. Analysis of historical financial data: Financial analysis is a process which evaluates the financial reports of the company to generate an idea about the position of the company at internal as well as external level. Financial analysis techniques make it easier for the management of the comapny to appraise the historical data and the stakeholders of the business to evaluate the financial statement and make a proper analysis on the basis of it (Brigham and Ehrhardt, 2013). Financial analysis techniques include ratio analysis, vertical analysis, horizontal analysis etc. these methods evaluates the financial statements on the various basis. Following is the study of financial analysis of AMERICAN AIRLINES GROUP INC: Ratio analysis: Ratio analysis is a quantitative evaluation technique which takes the concern of financial statement and other financial activities of the company to analyze the operating and financial level of the company. The ratio analysis evaluates the liquidity, efficiency, solvency and profitability level. Following is the calculations and the analysis of AMERICAN AIRLINES GROUP INC: Year (____2017____) Year (______2016__) Year (____2015____) Current ratio0.610.740.73 Acid test ratio0.520.670.67 Cash ratio0.020.020.03 Accruals ratio0.060.040.16 Cash Flow Yield-0.050.030.00 Cash Flow to Sales -0.030.020.00 Cash Flow to Assets -0.020.020.00 Current Cash Debt Coverage Ratio 0.320.470.46
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Accounting for corporate structure5 Free Cash Flow-122700079300098000 Accounts receivable turnover 15.1514.4812.69 Days’ sales outstanding 115635.62110082.19112301.37 Accounts payable turnover 34.9436.4933.40 Days’ payable outstanding 48317.8143627.4046791.78 Inventory turnover11.759.947.68 Days’ sales in inventory 115635.62110082.19112301.37 Cash Turnover143.07124.78105.10 Fixed Asset Turnover 365.37371.99342.20 Total Asset Turnover 444.47465.78431.12 Cash Conversion Cycle -8.03-12.07-13.03 Basic Defence Interval 26.4028.6623.39 Expense Coverage Days 124068119142118247 Debt250090002577500021725000 Equity392600037850005635000 Debt to Equity6.376.813.86 Times Interest Earned N/A5.337.05 Cash Interest Coverage 0.003.082.26 Cash Debt Coverage 0.320.470.46 Interest Expense to Total Debt 0.000.040.04 Financial Leverage 1.321.231.34 Gross Profit Margin 0.580.600.58 Operating Profit Margin 0.100.130.15 Pre-Tax Profit Margin 0.070.110.11 Net Profit Margin0.050.070.19 Return on Total Assets 0.040.050.16 Return on Common Equity 383.80535.201268.33
Accounting for corporate structure6 Book Value for Common Share 35.0036.0037.00 Market Capitalization 25368045.0428642692.8834662860.98 Effective Tax Rate0.301.302.30 Basic Earnings per Share 3.924.8511.39 Price-Earnings13.2310.694.55 Price-Sales0.960.960.96 Price-Book1.481.481.48 Dividend Payout0.100.080.04 Dividend Yield0.010.010.01 Dividend Coverage 1.181.453.42 Current liability ratio 0.350.350.33 Inventory to Sales Ratio 0.030.030.02 Cash to Current AssetsRatio 0.030.030.04 Current Assets toTotal Debt Ratio 0.370.400.46 Current Liabilities to Inventory Ratio 11.0112.6815.76 Top compensation to sales 422070004018000040990000 (Annual Report, 2018) The above table expresses about the ratios of the company. Liquidity ratio: Liquidity ratios are calculated to evaluate the internal position of the corporation. It measures the capability of business to reimburse its short term debt against the current assets of the company. Various ratios are calculated under the liquid ratio to generate a conclusion about the liquid position of the company. The current ratio and acid test ratio has been evaluated in this case to identify the liquid position of the company. Current ratio is measured to evaluate the total short term debt level of the company. Current ratio of AMERICAN AIRLINES GROUP INC explains that the liquid place of the organization has been lower from last 2 years. The current ratio of the business is 0.61 which explains that it is required for the company to improve the level as the Southwest airline level is also better (Morningstar, 2018). Further, acid test ratio of the organization has been measured and it has been found that the organization is also required to improve the level of quick assets so that a good position of liquidity could be maintained by the company in the industry as the level of Southwest airline level is quite better. Financing ratio: Financing ratios are calculated to evaluate the internal position of the company. It measures the capability of the company to pay its long term debt against the fixed assets and
Accounting for corporate structure7 equity of the company. Various ratios are calculated under the financing ratio to generate a conclusion about the financing and capital structure position. The debt to equity ratio and times interest earned ratio has been evaluated in this case to identify the financing position of the company (Brigham and Ehrhardt, 2013). The ratio of Debt to equity is measured to estimate the total long term debt level of the business against the whole equity of the concern. It explains about the capital structure position of AMERICAN AIRLINES GROUP INC. The ratio explains that the long term debt payment capability of the company is quite higher in the industry. The debt equity ratio of the company is 6.37 which explain that it is required for the company to reduce the level of equity to manage the risk and return as the Southwest airline level is also lower (Deegan, 2013). Further, times interest earned ratio of the business has been measured and it has also been evaluated that interest amount of the business has been lowered from most recent years and it briefs about the inferior cost of capital of the business. Activity ratio: Further, activity ratios are calculated to appraise the efficiency spot of the business. It measures the capability of the troupe to manage its assets and the working capital for the daily operations. Various ratios are calculated under the activity ratio to generate a conclusion about the working capital position of the company. The receivable turnover ratio, payable turnover ratio and inventory turnover ratio has been evaluated in this case to identify the activity and efficiency position of the company. Receivable turnover ratio is measured to evaluate the total time in which the debtors pay the amount to the company. It explains about the efficiency position of AMERICAN AIRLINES GROUP INC. The ratio explains that the debtors’ turnover ratio of the company is 15.15 days. Further, the accounts payable days and inventory turnover days have been calculated to identify the efficient position of the company (Romney et al, 2006). The accounts payable turnover days of the company are 34.94 days and inventory turnover days are 11.75 days which explains that the efficiency position of the company is quite competitive and it has been better from last year. It has also been found that the level of the company is also better then the Southwest airline level. Profitability ratio: Further, the profitability ratios of the company have also been evaluated to identify the capability of the company to generate the profit (Grinblatt and Titman, 2016). Gross profit % and return on shareholder’s equity has been evaluated to identify the profitability position of American Airlines group. The gross profit margin of the company is 58% which has been lower from last year. Though, the position of the company is quite better. Further, ROCE has been evaluated and it has been found that the ROCE of the company is 383.8 which have also been lower from last year. Though, the position of the company is quite competitive (Morningstar, 2018). Stock ratios: Lastly, the stock ratios of the company have been evaluated to identify the capability of the company to manage the market position. Earnings per share, price earnings ratio and dividend yield has been evaluated to identity the stock position of American Airlines group (Kiran and Singh, 2014). The earnings per share of the company are 3.92 which have been lower from last year. Further, price earnings ratio and dividend yield of the company has been evaluated and it has been found that the position of the corporation has been improved and it is quite competitive in the industry.
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Accounting for corporate structure8 The above ratio analysis calculations of the business brief that the superior spot and performance of the company. Horizontal analysis: Further, the horizontal statement of the organization has been evaluated to identify the changes in the organization and the financial statement of the organization from last year. Through the evaluation, it has been analyzed that the cash and company’s total current assets have been lowered from last year. Further, the total assets and total current liabilities have been enhanced and the total liabilities of the company have not been changed. Further, evaluation briefs that diverse alterations have taken position into the financial performance of the business from most recent years (Kaplan and Atkinson, 2015). The revenue position and gross margin position of the company expresses about the positive changes in the organization. Through the evaluation, it has been evaluated that the corporation’s position has been improved from most recent years. And it would be much better in next few years. Horizontal changes statement 201720162015 Cash-8.4%-17.4%-60.8% Total current assets-11.4%3.4%-17.6% total assets0.2%5.9%10.6% Total current liabilities7.9%2.0%1.3% Total liabilities0.0%11.0%2.5% Retained earnings104.9% - 233.3%-85.6% Total stockholder's equity3.7%-32.8%178.8% Number of shares outstanding-11.4%-17.4%-6.8% Net sales/ Revenue5.0%-2.0%-3.9% Cost of goods sold10.8%-6.8%-22.8% Gross margin1.3%1.4%16.6% Operating expenses8.1%7.1%8.9% Operating margin-23.2%-14.8%46.0% Interest expenses - 100.0%12.6%-0.8% Net income-28.3%-64.8%164.1% Earnings per share-19.2%-57.4%183.3% (Deegan, 2013) Vertical analysis: Further, the vertical statement of the organization has been evaluated to recognize the position of each item of the financial statement of the business. According to the evaluation, it has been measured that the cash level and level of total current assets of the business against the total current and noncurrent assets have been lowered from last year. Further, the total current liabilities level has been enhanced against the total liabilities and equity of the company (Du and Girma, 2009). The revenue position and gross margin position of the company expresses about the positive changes in the organization. Through the evaluation, it has been found that the company’s position has been better from last year. And it would be much better in next few years.
Accounting for corporate structure9 Vertical changes statement 201720162015 Cash0.57%0.63%0.81% Total current assets17.80%20.13%20.62% total assets100.00%100.00%100.00% Total current liabilities29.12%27.05%28.10% Total liabilities92.36%92.62%88.36% Retained earnings6.54%3.20%-2.54% Total stockholder's equity7.64%7.38%11.64% Number of shares outstanding1.16%1.37%1.63% Net sales/ Revenue100.00%100.00%100.00% Cost of goods sold41.78%39.63%41.67% Gross margin58.22%60.37%58.33% Operating expenses48.60%47.22%43.20% Operating margin9.61%13.15%15.14% Interest expenses0.00%2.47%2.15% Net income4.55%6.66%18.57% Earnings per share0.00%0.00%0.00% (Bandy, 2013) Analysis of financial performance: Through the evaluation on the financial presentation and the changes of the business, it has been measured that the financial presentation of the business is quite moderate. Though, it has been found that the entire industry has been affected in the recent year and due to which the performance of the business has also been lowered. Otherwise, the financial presentation and the place of the business are quite enhanced and it explains that the future performance of the company would be much better. It further briefs that the company’s place is quite better in terms of finance (Bierman and Smidt, 2012). In terms of investment, the company is one of the best choices for the investors to invest and get the higher return. The strength, weakness, porter’s 5 forces model, financial position of the business briefs that the investors should invest into the company to manage and enhance the return level. Recommendation and conclusion: To conclude, the financial performance and position of the company is quite better and it is a good choice for the investors to make an investment. The company would offer long term as well as short term profit to the investors and on the other hand, the future position and financial strength of the company would be better. Thus, it could be concluded that the investors should invest into the company to manage and enhance the return level.
Accounting for corporate structure10 References: Annual Report. 2017. AMERICAN AIRLINES GROUP. [Online]. Available at: https://americanairlines.gcs-web.com/static-files/17cae9f4-55b0-4a05-a2dc-33fcc0a01985 [Accessed as on 28th Mar 2018]. Bandy,G.2013.Financialmanagementandaccountinginthepublicsector.Oxon: Routledge. Bierman Jr, H. and Smidt, S., 2012.The capital budgeting decision: economic analysis of investment projects. Routledge. Brigham,E.F.andEhrhardt,M.C.,2013.Financialmanagement:Theory&practice. Cengage Learning. Customer services. 2018. AMERICAN AIRLINES GROUP. [Online]. Available at: https://www.aa.com/i18n/customer-service/about-us/american-airlines-group.jsp[Accessed as on 28th Mar 2018]. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Du, J. and Girma, S., 2009.Source of finance, growth and firm size: evidence from China(No. 2009.03). Research paper/UNU-WIDER. Fernandes, D., Lynch Jr, J.G. and Netemeyer, R.G., 2014. Financial literacy, financial education, and downstream financial behaviors.Management Science,60(8), pp.1861-1883. Gitman, L.J. and Zutter, C.J., 2012.Principles of managerial finance. Prentice Hall. Grinblatt, M. and Titman, S., 2016.Financial markets & corporate strategy. Prentice Hall. History. 2018.. Southwest AIRLINES GROUP. [Online]. Available at: https://www.southwest.com/[Accessed as on 28th Mar 2018]. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Kiran, R. S., & Singh, V. K. 2014. How to make the financial analysis an easy task – A comparative analysis between the traditional and the modern approach?International Journal of Engineering Research and Applications,4(8), 61-66. Morningstar. 2018. AMERICAN AIRLINES GROUP. [Online]. Available at: http://financials.morningstar.com/income-statement/is.html? t=AAL®ion=usa&culture=en-US[Accessed as on 28th Mar 2018]. Morningstar. 2018.. Southwest AIRLINES GROUP. [Online]. Available at: http://financials.morningstar.com/income-statement/is.html?t=LUV®ion=USA[Accessed as on 28th Mar 2018]. Romney, M.B., Steinbart, P.J., Zhang, R. and Xu, G., 2006.Accounting information systems. Pearson Education. Shapiro, A.C., 2005.Capital budgeting and investment analysis. Prentice Hall. Yahoo finance. 2018.. AMERICAN AIRLINES GROUP. [Online]. Available at: https://finance.yahoo.com/quote/AAL/[Accessed as on 28th Mar 2018].
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Accounting for corporate structure12 Appendix: AMERICAN AIRLINES GROUP INC (AAL) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in thousands except per share data.2017-122016-122015-122014-122013-12 Revenue4220700040180000409900004265000026743000 Cost of revenue1763600015924000170790002213600014345000 Gross profit2457100024256000239110002051400012398000 Operating expenses Sales, General and administrative132930001221300010918000100520006618000 Depreciation and amortization1702000152500013640001295000853000 Other operating expenses55180005234000542500049180003528000 Total operating expenses2051300018972000177070001626500010999000 Operating income40580005284000620400042490001399000 Interest Expense991000880000887000856000 Other income (expense)-9740006000-708000-150000-2723000 Income before income taxes3084000429900046160003212000-2180000 Provision for income taxes11650001623000-2994000330000-346000 Net income from continuing ops1919000267600076100002882000-1834000 Net income1919000267600076100002882000-1834000 Net income available to common shareholders1919000267600076100002882000-1834000 Earnings per share Basic3.924.8511.394.02-11.25 Diluted3.94.8111.073.93-11.25 Weighted average shares outstanding Basic489164552308668393717456163046 Diluted491692556099687355734016163046 EBITDA6075000710800071050005612000-304000 AMERICAN AIRLINES GROUP INC (AAL) CashFlowFlag BALANCE SHEET Fiscal year ends in December. USD in thousands except per share data.2017-122016-122015-122014-122013-12 Assets Current assets Cash Cash and cash equivalents2950003220003900009940001140000 Short-term investments47710006037000586400063090008111000
Accounting for corporate structure13 Total cash50660006359000625400073030009251000 Restricted cash3180006380006950007740001035000 Receivables17520001594000142500017710001560000 Inventories1359000109400086300010040001012000 Prepaid expenses65100063900074800012600001465000 Total current assets91460001032400099850001211200014323000 Non-current assets Property, plant and equipment Gross property, plant and equipment4980200045353000406540003534300030392000 Accumulated Depreciation Net property, plant and equipment3415600031159000275100002308400019259000 Goodwill40910004091000409100040910004086000 Intangible assets22030002173000224900022400002311000 Deferred income taxes42700014980002477000 Other long-term assets13730002029000210300022440002299000 Total non-current assets4225000040950000384300003165900027955000 Total assets5139600051274000484150004377100042278000 Liabilities and stockholders' equity Liabilities Current liabilities Capital leases25540001855000223100017080001446000 Accounts payable16880001592000156300013770001368000 Accrued liabilities39530003724000353900032910003607000 Other current liabilities67690006701000627200070590007385000 Total current liabilities1496400013872000136050001343500013806000 Non-current liabilities Pensions and other benefits74970007842000745000075620005828000 Other long-term liabilities2500900025775000217250002075300025375000 Total non-current liabilities3250600033617000291750002831500031203000 Total liabilities4747000047489000427800004175000045009000 Stockholders' equity Common stock50005000600070003000 Additional paid-in capital57140007223000115910001513500010594000 Retained earnings33610001640000-1230000-8562000-1.1E+07 Accumulated other comprehensive income-5154000-5083000-4732000-4559000-2032000 Total stockholders' equity3926000378500056350002021000-2731000 Total liabilities and stockholders' equity5139600051274000484150004377100042278000 AMERICAN AIRLINES GROUP INC (AAL) Statement of CASH FLOW
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Accounting for corporate structure14 Fiscal year ends in December. USD in thousands except per share data.2017-122016-122015-122014-122013-12 Cash Flows From Operating Activities Net income1919000267600076100002882000 - 1834000 Depreciation & amortization20170001818000160900015130001020000 Amortization of debt discount/premium and issuance costs-114000-119000-122000-171000 Deferred income taxes11410001611000 - 3014000346000-324000 Stock based compensation9000010000028400030400039000 Accounts receivable-190000-160000352000-160000-93000 Other working capital-220000414000-538000 - 1526000-291000 Other non-cash items10100018400068000-1080002158000 Net cash provided by operating activities4744000652400062490003080000675000 Cash Flows From Investing Activities Investments in property, plant, and equipment - 5971000 - 5731000 - 6151000 - 5311000 - 3114000 Property, plant, and equipment reductions9470001230003500033000128000 Acquisitions, net206000 Purchases of investments - 4836000 - 6241000 - 8126000 - 5380000 - 3342000 Sales/Maturities of investments59150006092000856900071790002161000 Other investing activities3190005900079000568000147000 Net cash used for investing activities - 3626000 - 5698000 - 5594000 - 2911000 - 3814000 Cash Flows From Financing Activities Debt issued30580007701000500900033020005134000 Debt repayment - 2332000 - 3827000 - 2153000 - 3132000 - 2926000 Repurchases of treasury stock - 1615000 - 4500000 - 3846000 - 1062000 Cash dividends paid-198000-224000-278000-144000 Other financing activities-58000-4400090007210001591000 Net cash provided by (used for) financing activities - 1145000-894000 - 1259000-3150003799000 Net change in cash-27000-68000-604000-146000660000 Cash at beginning of period3220003900009940001140000480000 Cash at end of period2950003220003900009940001140000
Accounting for corporate structure15 Free Cash Flow Operating cash flow4744000652400062490003080000675000 Capital expenditure - 5971000 - 5731000 - 6151000 - 5311000 - 3114000 Free cash flow - 122700079300098000 - 2231000 - 2439000 Supplemental schedule of cash flow data AMERICAN AIRLINES GROUP INC Trend chnages Fiscal year ends in December. USD in thousands except per share data.2017-12 2016- 122015-122014-12 Revenue5.0%-2.0%-3.9%59.5% Cost of revenue10.8%-6.8%-22.8%54.3% Gross profit1.3%1.4%16.6%65.5% Operating expenses Sales, General and administrative8.8%11.9%8.6%51.9% Depreciation and amortization11.6%11.8%5.3%51.8% Other operating expenses5.4%-3.5%10.3%39.4% Total operating expenses8.1%7.1%8.9%47.9% Operating income-23.2%-14.8%46.0%203.7% Interest Expense-100.0%12.6%-0.8%3.6% Other income (expense) - 16333.3% - 100.8%372.0%-94.5% Income before income taxes-28.3%-6.9%43.7%-247.3% Provision for income taxes-28.2% - 154.2% - 1007.3%-195.4% Net income from continuing ops-28.3%-64.8%164.1%-257.1% Net income-28.3%-64.8%164.1%-257.1% Net income available to common shareholders-28.3%-64.8%164.1%-257.1% Earnings per share Basic-19.2%-57.4%183.3%-135.7% Diluted-18.9%-56.5%181.7%-134.9% Weighted average shares outstanding Basic-11.4%-17.4%-6.8%340.0% Diluted-11.6%-19.1%-6.4%350.2% EBITDA-14.5%0.0%26.6% - 1946.1% AMERICAN AIRLINES GROUP INC (AAL) Trend changes Fiscal year ends in December.2017-2016-2015-2014-
Accounting for corporate structure16 USD in thousands except per share data.12121212 Assets Current assets Cash Cash and cash equivalents-8.4%-17.4%-60.8%-12.8% Short-term investments-21.0%3.0%-7.1%-22.2% Total cash-20.3%1.7%-14.4%-21.1% Restricted cash-50.2%-8.2%-10.2%-25.2% Receivables9.9%11.9%-19.5%13.5% Inventories24.2%26.8%-14.0%-0.8% Prepaid expenses1.9%-14.6%-40.6%-14.0% Total current assets-11.4%3.4%-17.6%-15.4% Non-current assets Property, plant and equipment Gross property, plant and equipment9.8%11.6%15.0%16.3% Accumulated Depreciation10.2%8.0%7.2%10.1% Net property, plant and equipment9.6%13.3%19.2%19.9% Goodwill0.0%0.0%0.0%0.1% Intangible assets1.4%-3.4%0.4%-3.1% Deferred income taxes-71.5%-39.5% Other long-term assets-32.3%-3.5%-6.3%-2.4% Total non-current assets3.2%6.6%21.4%13.2% Total assets0.2%5.9%10.6%3.5% Liabilities and stockholders' equity Liabilities Current liabilities Capital leases37.7%-16.9%30.6%18.1% Accounts payable6.0%1.9%13.5%0.7% Accrued liabilities6.1%5.2%7.5%-8.8% Other current liabilities1.0%6.8%-11.1%-4.4% Total current liabilities7.9%2.0%1.3%-2.7% Non-current liabilities Pensions and other benefits-4.4%5.3%-1.5%29.8% Other long-term liabilities-3.0%18.6%4.7%-18.2% Total non-current liabilities-3.3%15.2%3.0%-9.3% Total liabilities0.0%11.0%2.5%-7.2% Stockholders' equity Common stock0.0%-16.7%-14.3%133.3% Additional paid-in capital-20.9%-37.7%-23.4%42.9% Retained earnings104.9% - 233.3%-85.6%-24.2% Accumulated other1.4%7.4%3.8%124.4%
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Accounting for corporate structure17 comprehensive income Total stockholders' equity3.7%-32.8%178.8% - 174.0% Total liabilities and stockholders' equity0.2%5.9%10.6%3.5% AMERICAN AIRLINES GROUP INC (AAL) CashFlowFlag INCOME STATEMENT Fiscal year ends in December. USD in thousands except per share data.2017-122016-122015-12 Revenue100.00%100.00%100.00% Cost of revenue41.78%39.63%41.67% Gross profit58.22%60.37%58.33% Operating expenses Sales, General and administrative31.49%30.40%26.64% Depreciation and amortization4.03%3.80%3.33% Other operating expenses13.07%13.03%13.23% Total operating expenses48.60%47.22%43.20% Operating income9.61%13.15%15.14% Interest Expense2.47%2.15% Other income (expense)-2.31%0.01%-1.73% Income before income taxes7.31%10.70%11.26% Provision for income taxes2.76%4.04%-7.30% Net income from continuing ops4.55%6.66%18.57% Net income4.55%6.66%18.57% Net income available to common shareholders4.55%6.66%18.57% Earnings per share0.00%0.00%0.00% Basic0.00%0.00%0.00% Diluted0.00%0.00%0.00% Weighted average shares outstanding0.00%0.00%0.00% Basic1.16%1.37%1.63% Diluted1.16%1.38%1.68% EBITDA14.39%17.69%17.33% AMERICAN AIRLINES GROUP INC (AAL) CashFlowFlag BALANCE SHEET Fiscal year ends in December. USD in thousands except per share data.2017-122016-122015-12 Assets Current assets Cash Cash and cash equivalents0.57%0.63%0.81% Short-term investments9.28%11.77%12.11%
Accounting for corporate structure18 Total cash9.86%12.40%12.92% Restricted cash0.62%1.24%1.44% Receivables3.41%3.11%2.94% Inventories2.64%2.13%1.78% Prepaid expenses1.27%1.25%1.54% Total current assets17.80%20.13%20.62% Non-current assets Property, plant and equipment Gross property, plant and equipment96.90%88.45%83.97% Accumulated Depreciation-30.44%-27.68%-27.15% Net property, plant and equipment66.46%60.77%56.82% Goodwill7.96%7.98%8.45% Intangible assets4.29%4.24%4.65% Deferred income taxes0.83%2.92%5.12% Other long-term assets2.67%3.96%4.34% Total non-current assets82.20%79.87%79.38% Total assets100.00%100.00%100.00% Liabilities and stockholders' equity Liabilities Current liabilities Capital leases4.97%3.62%4.61% Accounts payable3.28%3.10%3.23% Accrued liabilities7.69%7.26%7.31% Other current liabilities13.17%13.07%12.95% Total current liabilities29.12%27.05%28.10% Non-current liabilities Pensions and other benefits14.59%15.29%15.39% Other long-term liabilities48.66%50.27%44.87% Total non-current liabilities63.25%65.56%60.26% Total liabilities92.36%92.62%88.36% Stockholders' equity Common stock0.01%0.01%0.01% Additional paid-in capital11.12%14.09%23.94% Retained earnings6.54%3.20%-2.54% Accumulated other comprehensive income-10.03%-9.91%-9.77% Total stockholders' equity7.64%7.38%11.64% Total liabilities and stockholders' equity100.00%100.00%100.00% Financial Data DescriptionSOUTHWEST AIRLINES CO 201620152014 Revenue20,42,50,00,00019,82,00,00,00018,60,50,00,000
Accounting for corporate structure19 Cost of goods sold6,13,20,00,0006,02,50,00,0007,67,70,00,000 Gross profit14,29,30,00,00013,79,50,00,00010,92,80,00,000 Operating profit3,76,00,00,0004,11,60,00,0002,22,50,00,000 Net profit2,24,40,00,0002,18,10,00,0001,13,60,00,000 Inventory33,70,00,00031,10,00,00034,20,00,000 Current assets4,49,80,00,0004,02,40,00,0004,40,40,00,000 Receivables54,60,00,00047,40,00,00036,50,00,000 Current liabilities6,84,40,00,0007,40,60,00,0005,92,30,00,000 Payales13,80,00,00017,80,00,0001,20,30,00,000 Equity8,44,10,00,0007,35,80,00,0006,77,50,00,000 Total liabilities14,84,50,00,00013,95,40,00,00013,42,50,00,000 Total assets23,28,60,00,00021,31,20,00,00020,20,00,00,000 DescriptionFormulaSOUTHWEST AIRLINES CO 201720162015 Profitability Return on shareholder funds NPAT/ Total equity26.58%29.64%16.77% Operating profit margin Operating net profit / Sales18.41%20.77%11.96% Gross Profit Margin Gross Profit / Sales69.98%69.60%58.74% Liquidity201720162015 Current ratio Current assets/current liabilities0.660.540.74 Acid test ratios Current assets- Inventory/curr ent liabilities0.610.500.69 Efficiency201720162015
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Accounting for corporate structure20 Receivables collection period Receivables/ Total sales*3659.768.737.16 Payables collection period Payables/ Cost of sales*3658.2110.7857.20 Inventory days Inventory/ cost of goods sold *36520.0618.8416.26 Gearing Ratios201720162015 Geraing Non current interets bearing debt / non current interet bearoing debt + equity0.250.260.26 Debt rqtio Total Liabilities / total assets0.640.650.66 Investment ratio201720162015 Earings per share NPAT/ Number of ordinary shares3.553.261.63 Price earing ratio Market price per share / earnings per share16.33