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Week 3 Assignment Fin 57a

In: Business and Management

Submitted By blackbaigan
Words 878
Pages 4
Interpreting Financial Results
Kashif Bhaie
FIN 571
02/04/16

Christopher Nola

Interpreting Financial Results

The financial statements for American Airlines
Abstract
In week 3, we are going to discuss about the interpreting financial results, according to the assigned industry. We are discussing about the U.S Airways which is merged and now is known for American Airlines
Introduction
Interpreting Financial Results Business owners and managers need to fully understand financial ratios and how useful of a tool they are to measurement management benchmarking and performance. Financial statements provide the information needed to calculate financial ratios which will consist of liquidity ratios, financial leverage, and profitability. Each ratio will provide a deeper look into the company.
Financial leverage ratios will determine the company’s long term solvency. Liquidity ratios will give managers the support to monitor short term financials. Profitability ratios will inform managers how efficient and profitable the company is compared to previous years, well here we have the example of American Airlines.
American Airlines is one of the world’s leading airlines, with the largest fleet size, revenue, total profit and second largest number of destinations served to millions of customers every day. American Airlines has recently merged with U.S Airways to dominate most of the airline market. It was founded in 1932, as American Airways, and has been going strong ever since. It is one of the founding members of OneWorld Airline alliance and coordinates with major leading airlines in the world.

Financial Analysis Ratios
A company’s financial ratios play a significant part in determining how the business is doing on a financial basis (Parrino, Kidwell, Bates, 2012).
Current Ratio is a liquidity…...

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