financial annalysis

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Company Data Sheet

COMPANY DATA WORKSHEET
Your Company
Company Name American Airlines Group INC.
SIC (Industry) Code1 4512
Stock Ticker Symbol1 AAL
Independent Audit Firm KPMG
Current Year Prior Year
Year-end Market Price per Common Share1 $ 42.35 $ 53.63
Date December 31, 2015 December 31, 2014 ← Enter Actual Fiscal Year-end Date
Common Shares Outstanding 624,622,381 697,474,535 (e.g., December 31, 2014)
Balance Sheet Data
($ in Millions) Current Year Prior Year
Cash $ 390 $ 994
Marketable Securities 6,559 7,083
Accounts Receivable 1,425 1,771
Inventory 863 1,004
Other Current Assets 748 898
Current Assets 9,985 11,750
Property, Plant, and Equipment (net) 27,510 23,084
Other Long-term Assets 10,920 8,391
Total Assets 48,415 43,225
Accounts Payable 1,563 1,377
Other Current Liabilities 12,042 12,027
Current Liabilities 13,605 13,404
Long-term Liabilities 29,175 27,800
Total Liabilities 42,780 41,204
Common Stock and Paid-in Capital 11,597 15,142
Preferred Stock and Paid-In Capital
Total Retained Earnings - 5,962 - 13,121
Total Stockholders' Equity 5,635 2,021
Total Liabilities and Stockholders' Equity 48,415 43,225
Income Statement Data
($ in Millions) Current Year Prior Year
Net Sales $ 40,990 $ 42,650
Cost of Goods Sold 34,786 38,401
Gross Margin 6,204 4,249
Net Income from Operations 6,204 4,249
Interest Expense 1,588 1,037
Income Tax Expense/ Benefit 2,994 330
Net Income 7,610 2,882
Other Comprehensive Income - 173 - 2,527
Net Comprehensive Income 7,437 355
Earnings per Share-Basic 11.39 4.02
Earnings per Share-Diluted 11.07 3.93
Cash Flow Statement Data
($ in Millions)
Cash flows from: Current Year Prior Year
Operating Activities 6,249 3,080
Financing Activities - 1,259 - 315
Investing Activities - 5,594 - 2,911
Dividends and Share Price Current Year Prior Year
Common Dividends 279 148
Preferred Dividends
Year-end Market Price per Share 42.35 53.63
1 Not generally found in financial statements

Company Analysis Sheet

COMPANY DATA WORKSHEET
COMPANY DATA
Company Name American Airlines Group INC.
SIC (Industry) Code 4512
Stock Ticker Symbol AAL
Independent Audit Firm KPMG
Enter Actual Fiscal Years →. Current Year Prior Year
Market Price per Common Share $ 42.35 $ 53.63
Date December 31, 2015 December 31, 2014
Common Shares Outstanding 624,622,381 697,474,535
Balance Sheet Data
($ in Millions) Current Year Prior Year
Cash $ 390 $ 994
Marketable Securities 6,559 7,083
Accounts Receivable 1,425 1,771
Inventory 863 1,004
Other Current Assets 748 898
Current Assets 9,985 11,750
Property, Plant, and Equipment (net) 27,510 23,084
Other Long-term Assets 10,920 8,391
Total Assets 48,415 43,225
Accounts Payable 1,563 1,377
Other Current Liabilities 12,042 12,027
Current Liabilities 13,605 13,404
Long-term Liabilities 29,175 27,800
Total Liabilities 42,780 41,204
Common Stock and Paid-in Capital 11,597 15,142
Preferred Stock and Paid-In Capital
Total Retained Earnings - 5,962 - 13,121
Total Stockholders' Equity 5,635 2,021
Total Liabilities and Stockholders' Equity 48,415 43,225
Income Statement Data
($ in Millions) Current Year Prior Year
Net Sales $ 40,990 $ 42,650
Cost of Goods Sold 34,786 38,401
Gross Margin 6,204 4,249
Net Income from Operations 6,204 4,249
Interest Expense 1,588 1,037
Income Tax Expense 2,994 330
Net Income 7,610 2,882
Other Comprehensive Income - 173 - 2,527
Net Comprehensive Income 7,437 355
Earnings per Share-Basic 11.39 4.02
Earnings per Share-Diluted 11.07 3.93
Cash Flow Statement Data
($ in Millions)
Cash flows from: Current Year Prior Year
Operating Activities 6,249 3,080
Financing Activities - 1,259 - 315
Investing Activities - 5,594 - 2,911
Dividends and Share Price Current Year Prior Year
Common Dividends 279 148
Preferred Dividends
Year-end Market Price per Share 42.35 53.63
COMPARATIVE ANALYSIS
Balance Sheet
Horizontal Analysis (% change) Percentage Change
Cash -61%
Marketable Securities -7%
Accounts Receivable -20%
Inventory -14%
Other Current Assets -17%
Current Assets -15%
Property, Plant, and Equipment (net) 19%
Other Long-term Assets 30%
Total Assets 12%
Accounts Payable 14%
Other Current Liabilities 0%
Current Liabilities 1%
Long-term Liabilities 5%
Total Liabilities 4%
Common Stock and Paid-in Capital -23%
Preferred Stock and Paid-In Capital n/a
Total Retained Earnings -55%
Total Stockholders' Equity 179%
Total Liabilities and Stockholders' Equity 12%
Income Statement
Horizontal Analysis (% change) Percentage Change
Net Sales -4%
Cost of Goods Sold -9%
Gross Margin 46%
Income from Operations 46%
Interest Expense 53%
Income Tax Expense 807%
Net Income 164%
Other Comprehensive Income -93%
Net Comprehensive Income 1995%
Earnings per Share-Basic 183%
Earnings per Share-Diluted 182%
Balance Sheet
Vertical Analysis (Common Size) Percentage Percentage
Cash 1% 2%
Marketable Securities 14% 16%
Accounts Receivable 3% 4%
Inventory 2% 2%
Other Current Assets 2% 2%
Current Assets 21% 27%
Property, Plant, and Equipment (net) 57% 53%
Other Long-term Assets 23% 19%
Total Assets 100% 100%
Accounts Payable 3% 3%
Other Current Liabilities 25% 28%
Current Liabilities 28% 31%
Long-term Liabilities 60% 64%
Total Liabilities 88% 95%
Common Stock and Paid-in Capital 24% 35%
Preferred Stock and Paid-In Capital 0% 0%
Total Retained Earnings -12% -30%
Total Stockholders' Equity 12% 5%
Total Liabilities and Stockholders' Equity 100% 100%
Income Statement
Vertical Analysis (Common Size) Percentage Percentage
Net Sales 100% 100%
Cost of Goods Sold 85% 90%
Gross Margin 15% 10%
Income from Operations 15% 10%
Interest Expense 4% 2%
Income Tax Expense 7% 1%
Net Income 19% 7%
Other Comprehensive Income -0% -6%
Net Comprehensive Income 18% 1%
RATIO ANALYSIS
Ratio Components Ratio Values Component Values
Liquidity Analysis
Working Capital 73%
Current Assets 9,985
Current Liabilities 13,605
Current Ratio 73%
Current Assets 9,985
Current Liabilities 13,605
Quick Ratio 67%
current assets - inventory 9,122
current liabilities 13,605
Activity Analysis (Asset Management)
Accounts Receivable Turnover 2876%
sales 40,990
account receivable 1,425
Days' Sales in Receivables 12.689070505 days
account receivable 1,425
sales / 365 112.30
Inventory Turnover 40.3082271147 days
cost of sales 34,786
inventory 863
Day's Sales in Inventory 9.0552233657 days
inventory * 365 314,995
cost of sales 34,786
Asset Turnover ** 85%
Sales 40,990
Total Assets 48,415
Capital Structure Analysis (Solvency)
Fixed Assets to LT Liabilities 1.32:1 **
Fixed assets 38,430
long term liabilities 29,175
Debt-to-Equity Ratio 759%
Total liabilities 42,780
Total Stockholder's equity 5,635
Times Interest Earned 3.9068010076 Times
Income before interest and taxes 6,204
interest expense 1,588
Profitability Analysis
Net Sales to Assets $ 0.89
Net Sales 40,990
Average total assets 45,820
Profit Margin** 19%
Net income 7,610
Net sales 40,990
Return on Total Assets 13%
Income before interest and taxes 6,204
total assets 48,415
Return on Equity 135%
Net income 7,610
Shareholder's equity 5,635
Return on Common Equity 57%
Net income 7,610
Average common shareholder's equity 13369.5
Earnings per Share n/a
net income - dividends on preferred stock 7,610
average outstanding shares 661,048,458
Return on Common Equity 57%
Net income 7,610
Average common shareholder's equity 13369.5
Capital Market Analysis (Market Strength)
Price-Earnings Ratio 3.72
Market price of common stock per share 42.35
Earning per share 11.39
Divendends per Share n/a
Dividends 279
Number of shares 624,622,381
Dividend Yield 6.587957497
Annual Dividends Per Common Share 279
Market Price of Common Stock Per Share 42.35
Dividend Payout Ratio 4%
Dividends 279
Net income 7,610
Cash Flow Analysis (Adequacy)
Cash Flow Yield** 0.8211563732
Cash flow from operating activities 6,249
Net income 7,610
Cash Flow to Sales** 15%
Cash flow from operating activities 6,249
Net sales 40,990
Cash Flow to Assets** 13%
Cash flow from operating activities 6,249
Total Assets 48,415

Financial Analysis Data Sheet

FINANCIAL ANALYSIS DATA WORKSHEET
COMPANY DATA Company #1 Company #2 Company #3 Company #4
Company Name American Airlines Group INC. DELTA AIRLINES INC Southwest
SIC (Industry) Code 4512 001-5424 4512
Stock Ticker Symbol AAL DAL LUV
Independent Audit Firm KPMG Ernst & Young LLP Ernst & Young LLP
Enter Actual Fiscal Years →. Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
Market Price per Common Share $ 42.35 $ 53.63 56.2 48.6 $ 0.29 $ 0.22
Date December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 December 31,2015 December 31, 2014
Common Shares Outstanding 624,622,381 697,474,535 1482.3 1484.18 661 687
Balance Sheet Data
($ in Millions) Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
Cash $ 390 $ 994 1,972 2,088 1583 1,282
Marketable Securities 6,559 7,083 1,465 1217 1,468 1,706
Accounts Receivable 1,425 1,771 2,139 3,222 474 365
Inventory 863 1,004 379 534 311 342
Other Current Assets 748 898 3101 2097 188 232
Current Assets 9,985 11,750 9,056 9,158 4024 3,927
Property, Plant, and Equipment (net) 27,510 23,084 23,039 21,929 24,685 22,513
Other Long-term Assets 10,920 8,391 21,039 22,918 21312 19723
Total Assets 48,415 43,225 53,134 54005 28,709 26,440
Accounts Payable 1,563 1,377 2,743 2,622 1,188 1,203
Other Current Liabilities 12,042 12,027 14783 14225 5581 4462
Current Liabilities 13,605 13,404 17,526 16,847 637 258
Long-term Liabilities 29,175 27,800 24,758 28,345 2541 2434
Total Liabilities 42,780 41,204 42284 45192 7406 5923
Common Stock and Paid-in Capital 11,597 15,142 10,875 12,981 808 808
Preferred Stock and Paid-In Capital 0 0 1374 1315
Total Retained Earnings - 5,962 - 13,121 7623 3456 9409 7416
Total Stockholders' Equity 5,635 2,021 10850 8813 21312 19723
Total Liabilities and Stockholders' Equity 48,415 43,225 53,134 54005 28,718 25,646
Income Statement Data
($ in Millions) Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
Net Sales $ 40,990 $ 42,650 40704 40362 19,820 18605
Cost of Goods Sold 34,786 38,401 32902 38156 12.41 13.11
Gross Margin 6,204 4,249 7802 2206 7.14 5.49
Net Income from Operations 6,204 4,249 7802 2206 4116 2225
Interest Expense 1,588 1,037 481 650 121 130
Income Tax Expense 2,994 330 -2631 -413 1298 680
Net Income 7,610 2,882 4526 659 2181 1136
Other Comprehensive Income - 173 - 2,527 36 -2181 -313 -735
Net Comprehensive Income 7,437 355 4562 -1522 1868 401
Earnings per Share-Basic 11.39 4.02 5.68 0.79 3.3 1.65
Earnings per Share-Diluted 11.07 3.93 5.63 0.78 3.27 1.64
Cash Flow Statement Data
($ in Millions)
Cash flows from: Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
Operating Activities 6,249 3,080 7927 4947 3238 2902
Financing Activities - 1,259 - 315 -4088 -3240 -1024 -1248
Investing Activities - 5,594 - 2,911 -3955 -2463 -1913 -1727
Dividends and Share Price Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
Common Dividends 279 148 359 252 180 139
Preferred Dividends 0 0 0 0
Year-end Market Price per Share 42.35 53.63 0.29 0.22
COMPARATIVE ANALYSIS
Balance Sheet
Horizontal Analysis (% change) Percentage Change Percentage Change Percentage Change Percentage Change
Cash -61% -6% 23%
Marketable Securities -7% 20% -14%
Accounts Receivable -20% -34% 30%
Inventory -14% -29% -9%
Other Current Assets -17% 48% -19%
Current Assets -15% -1% 2%
Property, Plant, and Equipment (net) 19% 5% 10%
Other Long-term Assets 30% -8% 8%
Total Assets 12% -2% 9%
Accounts Payable 14% 5% -1%
Other Current Liabilities 0% 4% 25%
Current Liabilities 1% 4% 147%
Long-term Liabilities 5% -13% 4%
Total Liabilities 4% -6% 25%
Common Stock and Paid-in Capital -23% -16% 0%
Preferred Stock and Paid-In Capital n/a 0% 4%
Total Retained Earnings -55% 121% 27%
Total Stockholders' Equity 179% 23% 8%
Total Liabilities and Stockholders' Equity 12% -2% 12%
Income Statement
Horizontal Analysis (% change) Percentage Change Percentage Change Percentage Change Percentage Change
Net Sales -4% 1% 7%
Cost of Goods Sold -9% -14% -5%
Gross Margin 46% 254% 30%
Income from Operations 46% 254% 85%
Interest Expense 53% -26% -7%
Income Tax Expense 807% 537% 91%
Net Income 164% 587% 92%
Other Comprehensive Income -93% -102% -57%
Net Comprehensive Income 1995% -400% 366%
Earnings per Share-Basic 183% 619% 100%
Earnings per Share-Diluted 182% 622% 99%
Balance Sheet
Vertical Analysis (Common Size) Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage
Cash 1% 2% 4% 4% 6% 5%
Marketable Securities 14% 16% 3% 2% 5% 6%
Accounts Receivable 3% 4% 4% 6% 2% 1%
Inventory 2% 2% 1% 1% 1% 1%
Other Current Assets 2% 2% 6% 4% 1% 1%
Current Assets 21% 27% 17% 17% 14% 15%
Property, Plant, and Equipment (net) 57% 53% 43% 41% 86% 85%
Other Long-term Assets 23% 19% 40% 42% 74% 75%
Total Assets 100% 100% 100% 100% 100% 100%
Accounts Payable 3% 3% 5% 5% 4% 5%
Other Current Liabilities 25% 28% 28% 26% 19% 17%
Current Liabilities 28% 31% 33% 31% 2% 1%
Long-term Liabilities 60% 64% 47% 52% 9% 9%
Total Liabilities 88% 95% 80% 84% 26% 23%
Common Stock and Paid-in Capital 24% 35% 20% 24% 3% 3%
Preferred Stock and Paid-In Capital 0% 0% 0% 0% 5% 5%
Total Retained Earnings -12% -30% 14% 6% 33% 29%
Total Stockholders' Equity 12% 5% 20% 16% 74% 77%
Total Liabilities and Stockholders' Equity 100% 100% 100% 100% 100% 100%
Income Statement
Vertical Analysis (Common Size) Percentage Percentage Percentage Percentage Percentage Percentage Percentage Percentage
Net Sales 100% 100% 100% 100% 100% 100%
Cost of Goods Sold 85% 90% 81% 95% 0% 0%
Gross Margin 15% 10% 19% 5% 0% 0%
Income from Operations 15% 10% 19% 5% 21% 12%
Interest Expense 4% 2% 1% 2% 1% 1%
Income Tax Expense 7% 1% -6% -1% 7% 4%
Net Income 19% 7% 11% 2% 11% 6%
Other Comprehensive Income -0% -6% 0% -5% -2% -4%
Net Comprehensive Income 18% 1% 11% -4% 9% 2%
RATIO ANALYSIS
Ratio Components Ratio Values Component Values Ratio Values Component Values Ratio Values Component Values Ratio Values Component Values
Liquidity Analysis
Working Capital 73% 52% 632%
Current Assets 9,985 9,056 4,024
Current Liabilities 13,605 17,526 637
Current Ratio 73% 52% 632%
Current Assets 9,985 9,056 4,024
Current Liabilities 13,605 17,526 637
Quick Ratio 67% 32% 583%
current assets - inventory 9,122 5,576 3,713
current liabilities 13,605 17,526 637
Activity Analysis (Asset Management)
Accounts Receivable Turnover 2876% 1903% 4181%
sales 40,990 40704 19,820
account receivable 1,425 2,139 474
Days' Sales in Receivables 12.689070505 days 19.1807930425 days 8.729061554 days
account receivable 1,425 2,139 474
sales / 365 112.30 40704 54.30
Inventory Turnover 40.3082271147 days 86.8126649077 days 0 days
cost of sales 34,786 32902
inventory 863 379 311
Day's Sales in Inventory 9.0552233657 days 4.2044556562 days 9147.0588235294 days
inventory * 365 314,995 379 113,515
cost of sales 34,786 32902 12
Asset Turnover ** 85% 77% 69%
Sales 40,990 40704 19,820
Total Assets 48,415 53,134 28,709
Capital Structure Analysis (Solvency)
Fixed Assets to LT Liabilities 1.32:1 ** 1.780353825 18.1019283747
Fixed assets 38,430 44,078 45,997
long term liabilities 29,175 24,758 2,541
Debt-to-Equity Ratio 759% 390% 35%
Total liabilities 42,780 42284 7,406
Total Stockholder's equity 5,635 10850 21,312
Times Interest Earned 3.9068010076 Times 16.2203742204 times 34.0165289256 Times
Income before interest and taxes 6,204 7802 4,116
interest expense 1,588 481 121
Profitability Analysis
Net Sales to Assets $ 0.89 $ 0.76 $ 0.72
Net Sales 40,990 40704 19,820
Average total assets 45,820 53,570 27,575
Profit Margin** 19% 11% 11%
Net income 7,610 4526 2,181
Net sales 40,990 40704 19,820
Return on Total Assets 13% 15% 14%
Income before interest and taxes 6,204 7802 4,116
total assets 48,415 53,134 28,709
Return on Equity 135% 42% 10%
Net income 7,610 4526 2,181
Shareholder's equity 5,635 10850 21,312
Return on Common Equity 57% 38% 270%
Net income 7,610 4526 2,181
Average common shareholder's equity 13369.5 11928 808
Earnings per Share n/a -4.2804940536 1.1973293769
net income - dividends on preferred stock 7,610 -6,349 807
average outstanding shares 661,048,458 1483.24 674
Return on Common Equity 57% 38% 270%
Net income 7,610 4526 2,181
Average common shareholder's equity 13369.5 11928 808
Capital Market Analysis (Market Strength)
Price-Earnings Ratio 3.72 9.8943661972 0.09
Market price of common stock per share 42.35 56.2 0.29
Earning per share 11.39 5.68 3.30
Divendends per Share n/a 0.2421911894 0.2723146747
Dividends 279 359 180
Number of shares 624,622,381 1482.3 661
Dividend Yield 6.587957497 6.3879003559 620.6896551724
Annual Dividends Per Common Share 279 359 180
Market Price of Common Stock Per Share 42.35 56.2 0.29
Dividend Payout Ratio 4% 8% 8%
Dividends 279 359 180
Net income 7,610 4526 2,181
Cash Flow Analysis (Adequacy)
Cash Flow Yield** 0.8211563732 1.7514361467 1.4846400734
Cash flow from operating activities 6,249 7927 3,238
Net income 7,610 4526 2,181
Cash Flow to Sales** 15% 19% 16%
Cash flow from operating activities 6,249 7927 3,238
Net sales 40,990 40,704 19,820
Cash Flow to Assets** 13% 15% 11%
Cash flow from operating activities 6,249 7927 3,238
Total Assets 48,415 53,134 28,709

Evaluation Notes

EVALUATION NOTES
Cash Flows
What was the most significant item reported by your companies for the most recent year in
their investing activities sections?
What is the most significant item reported by your companies for the most recent year in
their financing activities sections?
What were these two companies’ trends in net cash provided by operating activities over the
most recent three-year period?
What conclusions concerning the management of cash can be drawn from the cash flow ratios
computed for your companies?
How are cash inflows from dividends and interest and cash outflows for dividends and
interest classified in the cash flow statements for your companies?
Equity and Earnings
What percentage of authorized shares was issued by your companies at the end of the most
recent year?
What percentage of issued shares was held as treasury stock by your companies at the end
of the most recent year?
What percent of current year net income was paid out as cash dividends for your companies?
What were the two most significant items that affected calculation of diluted EPS?
What is the three-year trend for basic earnings per share? Is the trend for diluted EPS
significantly different?
Financial Analysis
How would you characterize the companies with regard to the following?
Liquidity
Asset Management
Long-term Solvency
Profitability
Market Strength
Cash Flow Adequacy
What were the most significant changes revealed by horizontal analysis?
What were the most significant changes revealed by verticalanalysis?