In response to your peers, support or respectfully challenge their evaluation of industry trends.

I thoroughly enjoyed this class and learning how to analyze different companies and their financial statements. I think the best aspects of this class, that I can put to use in my career, are the different ratios that we learned about. I work as an accounting manager in a private trucking company, but I can still utilize the ratios we learned about on the financials that I prepare. I can use those ratios to show the owner how well or poor are financial position of the company is. For example, I can use the quick ratio to determine if we are able to cover our current liabilities with our current assets and have this information for the owner.

I did my project on JetBlue which is part of the airline industry. I was able to find and read an interesting article about the airline industry titled, "Back to the future? Airline sector poised for change post-COVID-19. This article addresses five fundamental shifts that arose from the COVID-19 pandemic. One major thing that stood out to me the most is the amount of debt that airline industry has accumulated between the year 2020 and 2021. According to this article, the amount of debt is predicted to exceed revenue in the airline industry by the year 2024 if no measures are taken. The COVID-19 pandemic has not only disrupted leisure travel, but it has also changed business travel as more people have been able to work from home. The current fuel prices are also very disrupting for the airline industry as flights are becoming more expensive and less people are willing to travel. I think the airline industry will have a bit of a rough few years ahead of them until the current situation in Europe gets resolved and fuel prices stabilize.

-Pavlo

My takeaway from this class is that for people working in the accounting or finance field is extremely important that they learn and practice their financial analysis skills. It is a fundamental tool, not just because it evaluates current and past situations to anticipate its evolution and to be able to identify opportunities or threats using a set of techniques used to diagnose the situation of the company through the use of indicators and financial ratios. With a thorough analysis, the company can select among the different possibilities of action and make future projections, and because this analysis foresees possible future scenarios, it is a good instrument for managing financial risks.

I discovered an interesting fact about Nike and the use of emergent technologies in their limited-edition footwear. Nike has opened to the new era of 3D printing which consists of creating a three-dimensional object by superimposing layers of material. In 2018 and in just 9 days Nike was able to create the perfect shoes for Eliud Kipchoge, a runner who specialized in long distances, and who currently holds the world record for the best time in running marathons after the Berlin marathon where he wore the Nike Zoom VaporFly lite Flyprint. Nike found the secret recipe by using soft and resistant thermoplastic polyurethane (TPU) in a 3D printer, seeking to lighten the weight and prevent the threads of the shoe from retaining water, managing to give it the shape that the runner's foot needs to obtain optimal ventilation and ensure that the plastic structure follows its movement. This technology has a lower environmental impact since fewer materials are used and its composition is more ecological. Lastly, the speed with which a shoe can be manufactured is up to 16 times faster than in a conventional manufacturing process, so Nike can potentially release more products at a faster pace and at a higher price which could result in greater profits for the company and shareholders.

-Maria