Reference no: EM133200393
Assignment - American Airlines Annual Report Project
ANNUAL REPORT PROJECT - Write a report as though you were advising a relatively knowledgeable investor who is considering purchasing stock in your company. Your objective is to inform the investor of those attributes of your company you believe the investor should consider in making an investment decision. Your objective is not to sell the company; so be objective.
The body of the report should contain the following sections:
Summary - Summarize those attributes you believe are most important to a prospective investor. Identify the major strengths and weaknesses.
Company Description - Identify major products and market segments.
Industry Attributes - Briefly describe any attributes of the industry that have a major effect on the performance of your company. For example, what factors affect demand for the company's product?
Profitability - Has the company been profitable over the last 3 years? Have profits increased or decreased? What is the net profit margin? What is the return on assets? What is the return on equity? Perform a DuPont analysis.
Operating, Investing and Financing Cash Flows: How have operating, investing, and financing cash flows changed over the last 3 years?
Growth. Is the company growing? Consider changes in total assets, current assets, and long-term assets. What is the dividend payout ratio?
Capital Structure: How is the company financed (debt or equity)? Has the debt to asset ratio changed much in the last 3 years?
Asset Management: What is the average collection period? What is the inventory turnover? What is the total asset turnover? Is the company capital intensive (percent of long-term assets to total assets)?
Operating Cycle: What is the company's inventory conversion period, receivables conversion period, payables deferral period, and cash conversion period?
Stock Price: What has happened to the company's stock price over the last 3 years? What is the company's dividend? Has it changed in the last 3 years? What is the company's beta?
Attach Appendix A: Income Statement, Appendix B: Balance Sheet, Appendix C: the Statement of Cash Flows, and Appendix D: the five-year stock chart.