Directions: Go to the investor relations page of American Airlines to get its 2019 annual report. PLEASE FILL OUT EXCEL SHEET.

1. Using the firm's selected financial data:

   1. Make a table showing the income statement (in M$). Note that any expenses that do not have their own specific line listed should be grouped in "Other operating expenses"

   2. Use the table created to create a common size income statement (% of operating revenues)

   3. Show year-on-year (YoY) growth

   4. What happened to the profit margins?

   5. What are the actual tax rates?

2. Using the operating stats, what is the YoY growth rate for:

   1. Yield per passenger mile?

   2. Operating expense per available seat mile (ASM)?

   3. Revenue passenger miles?

   4. Average fuel cost per gallon?

   5. Considering the above, what factors do you think are affecting margins the most?

      Be specific.

3. Using the firm's balance sheets, show:

   1. Balance sheets as shown (in M$); show only the net property and equipment lines.

   2. Common size balance sheets.

   3. Are there any outliers in the balance sheets that you think merit mentioning?

   4. For these years, what is the net working capital position? Current ratio? Quick ratio? Total debt ratio? Return on assets (ROA)? Return on equity (ROE)?What is the p/e ratio for 2018?

4. Using the Statement of Cash Flows, which operating activity items stand out to you and why?

February 2021 | MGMT 332 | College of Business | worldwide.erau.edu

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5.

Go to the carrier snapshot section in the Bureau of Transportation Statistics (United States Department of Transportation). Select American and answer the following questions:

1. What are the top three markets by share?

2. What happened to passenger yields?

3. What happened to costs per ASM?

4. What do you think this means for the bottom line?

5. What are the top three city pairs?

A B C D E F G H K L M N I J 2018 2017 2018 2019 2017 2018 2019 2019 Answer parts d and e below: 2 3 Total Operating Revenues 4 Operating Expenses: 5 Salaries and benefits 6 Aircraft fuel 7 Regional 8 Landing fees and other rent 9 Depreciation/amortization 10 Other operating expenses 11 Total Operating Expenses 12 Operating Income 13 Non-operating income/expense 14 Income before taxes 15 Income tax expense 16 Net Income 17 Actual tax rate 18 A B C D E F G H K L M N I J 2018 2017 2018 2019 2017 2018 2019 2019 Answer parts d and e below: 2 3 Total Operating Revenues 4 Operating Expenses: 5 Salaries and benefits 6 Aircraft fuel 7 Regional 8 Landing fees and other rent 9 Depreciation/amortization 10 Other operating expenses 11 Total Operating Expenses 12 Operating Income 13 Non-operating income/expense 14 Income before taxes 15 Income tax expense 16 Net Income 17 Actual tax rate 18