Discuss the trends revealed in each ratio

Assignment Help Financial Management

Reference no: EM131299785

Using DuPont analysis is a quick and relatively easy way to assess the overall health of a firm. Include information on the DuPont equation.

Go to finance.yahoo.com and choose a company by entering the company name in the box to the left of "Get Quotes." Once you have the company overview page open, to the left you will see a list of links for further information on that firm.

Near the bottom of the link column are financial statements. Open the firm's income statement and balance sheet and use the information there to calculate all parts of the DuPont Ratio for the past three years; do not use Nike. If your firm does not have 3 years of full information, choose a different firm. Report each ratio value as well as the numerator and denominator of each of the 4 ratios for the past 3 years (12 ratios in total). Discuss the trends revealed in each ratio.

Note your firm's name in the title of your post and please do not duplicate firms.
United Airlines

Income Statement
All numbers in thousands

Revenue	?12?/?31?/?15	? 12?/?31?/?14	?12?/?31?/?2013
Total Revenue	37,864,000	38,901,000	38,279,000
Cost of Revenue	12,130,000	16,611,000	17,192,000
Gross Profit	25,734,000	22,290,000	21,087,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	18,423,000	17,795,000	17,629,000
Non Recurring	326,000	443,000	520,000
Others	1,819,000	1,679,000	1,689,000
Total Operating Expenses	-	-	-
Operating Income or Loss	5,166,000	2,373,000	1,249,000
Income from Continuing Operations
Total Other Income/Expenses Net	-327,000	-562,000	24,000
Earnings Before Interest and Taxes	4,839,000	1,811,000	1,273,000
Interest Expense	620,000	683,000	734,000
Income Before Tax	4,219,000	1,128,000	539,000
Income Tax Expense	-3,121,000	-4,000	-32,000
Minority Interest	-	-	-
Net Income From Continuing Ops	7,340,000	1,132,000	571,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	7,340,000	1,132,000	571,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	7,340,000	1,132,000	571,000

Balance Sheet

All numbers in thousands

Period Ending	?12?/?31?/?15	12?/?31?/14	? 12?/?31?/?13
Current Assets
Cash And Cash Equivalents	3,058,000	3,156,000	3,251,000
Short Term Investments	2,190,000	2,382,000	1,901,000
Net Receivables	1,128,000	1,146,000	2,179,000
Inventory	738,000	666,000	667,000
Other Current Assets	740,000	774,000	704,000
Total Current Assets	7,828,000	7,547,000	8,702,000
Long Term Investments	-	-	-
Property Plant and Equipment	21,580,000	19,467,000	18,047,000
Goodwill	4,523,000	4,523,000	4,523,000
Intangible Assets	4,136,000	4,284,000	4,436,000
Accumulated Amortization	-	-	-
Other Assets	757,000	774,000	1,104,000
Deferred Long Term Asset Charges	2,037,000	2,037,000	2,037,000
Total Assets	40,861,000	36,595,000	36,812,000
Current Liabilities
Accounts Payable	7,972,000	7,401,000	7,188,000
Short/Current Long Term Debt	1,483,000	2,117,000	1,485,000
Other Current Liabilities	2,959,000	2,990,000	3,434,000
Total Current Liabilities	12,414,000	12,508,000	12,107,000
Long Term Debt	10,400,000	10,524,000	10,924,000
Other Liabilities	6,255,000	7,288,000	6,600,000
Deferred Long Term Liability Charges	2,826,000	3,879,000	4,197,000
Minority Interest	-	-	-
Negative Goodwill	-	-	-
Total Liabilities	31,895,000	34,199,000	33,828,000
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	4,000	4,000	4,000
Retained Earnings	3,457,000	-3,883,000	-5,015,000
Treasury Stock	-1,610,000	-367,000	-38,000
Capital Surplus	7,946,000	7,721,000	7,425,000
Other Stockholder Equity	-831,000	-1,079,000	608,000
Total Stockholder Equity	8,966,000	2,396,000	2,984,000
Net Tangible Assets	307,000	-6,411,000	-5,975,000

Reference no: EM131299785

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