Question
Need help in rewriting in my own words please Introduction: Taking a closer look at Company A and Company B's financial performance over the last
Need help in rewriting in my own words please
Introduction: Taking a closer look at Company A and Company B's financial performance over
the last three years, for purpose of an acquisition of an additional airline for the Caribbean luxury
vacation and charter flight market.
Assets, Liabilities and Equity:
Company A: In the column chart below, you will see that in 2017 and 2018 the assets, liabilities, and shareholder's equity stay the same just over $100,000 annually, and in 2019 they drop to just over $80,000 annually. In 2016 they sold a portion of their fleet and real estate holdings, causing an influx of cash in 2017-2018 (Sokolas).
Revenue and Earnings:
Company A: By looking at the line chart below for Company A's revenue, gross profit, total
equities, earnings before tax, net earnings, and taxes, you can see that in 2019they have shown a
positive outcome over the past three years, their total equities have very minimal changes. In
2018 they show a positive revenue, however their gross profit was much lower than 2017 and
2019.
Company B:By looking at the line chart below for Company B's revenue, gross profit, total
equities, earnings before tax, net earnings, and taxes, you can see that 2017 was the most positive
year for them, and they ended 2019 just above where they were at in 2018. Indicating that they are heading in a more positive financial position. In 2017 they were in the most positive position
for revenue, gross profit, total expenses, earnings before tax, net earnings and taxes.
Conclusion: Comparing Company A and Company B side by side, Company B seems to be a bit
more positive financially, not only do they have more assets, liabilities, and equities, but they
also have more financial consistency than Company A in revenues, gross profit and earnings.
Both companies are showing very minimal net earnings, while company B is showing more
assets than Company A.
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