CC United Airlines Ratio Analysis Presentation

Prepare an 8-10 minute presentation to provide analysis on an Airline’s ratios.  You must also prepare slides to support your presentation.

The ratios have already been calculated for you, but the analysis report needs to be written out and explained, and everything should be proof-read carefully by every team member.  Presentation style and slides will count for 24% of your grade.  Analysis counts for 76% of your grade.

Ratio Analysis Resource

In this ratio analysis, we will look at the financial statements of a one of the top US airlines. Your team has already chosen an airline. 

Data Description

The airline data has been provided to you, along with the computations of the ratios (the formulas are contained in the Excel worksheet, Ratios.) The workbook includes worksheets for Ratios, Consolidated Balance Sheet, and Statements of Operations (Income Statement), and Statement of Cash Flows.

Alaska Airlines (2022).xlsxDownload Alaska Airlines (2022).xlsx

American_Airlines_Statements (2022).xlsxDownload American_Airlines_Statements (2022).xlsx

Delta_Air_Lines_Financial_Statements (2022).xlsxDownload Delta_Air_Lines_Financial_Statements (2022).xlsx

Southwest_Airlines_Financial_Statements (2022).xlsxDownload Southwest_Airlines_Financial_Statements (2022).xlsx

United_Airlines_Statements (2022).xlsxDownload United_Airlines_Statements (2022).xlsx

1. WHERE DID THIS DATA COME FROM?  The financial statements for Delta Airlines were obtained from the U.S. Securities and Exchange Commission through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). Since 1934, the SEC has required disclosure in forms and documents. In 1984, EDGAR began collecting electronic documents to help investors get information that can be downloaded. Financial statements for publicly traded companies are available through the site: https://www.sec.gov/edgar/searchedgar/companysearch.htmlLinks to an external site..

How to analyze the ratios:

Chapter 2 (LO 2.2) and Chapter 13 (LO 13.3) in your textbook provide information on ratio analysis.  We will also discuss it in class and I recommend watching the Ch 2.2 & Ch 13 LO 3: Tutorials Quiz to help with your analysis. Also check out these slides.Download Also check out these slides.

What should be in the Presentation?

Your presentation must include slides.  The slides need to be turned in.

Title Slide: You must list your team name, team members, name of company selected, and the date of presentation.

Analysis:  As a team, select your favorite 8 ratios that you will analyze.  You will answer the following questions for each ratio selected. Note: Questions 3-7 below are the true analysis  You should focus on those questions when presenting.  Be sure to answer those questions thoroughly!

1. What is the name and formula of the ratio according to our text?  

Using the data provided, write out the formula and result for the three most recent years for your selected company.  Include the name of the company.  Don’t verbally discuss the ratio calculation. 

Did the ratio increase/decrease/stay the same over the last three years?  Explain the meaning.

What was the cause of that change?  (Be specific!  Not just that the numbers changed. Which component? Why? Dig into the finanical statements provided)

Is that change a good or bad thing?  Why?

What does this ratio tell you about this company? (Why do we care?)

How does this ratio relate to at least one other ratio that you selected?  (Not just the similar numbers, but how does this ratio inform you about the other ratios?)

1. SUMMARY: Based on the ratio analysis, identify 3 questions you might have about the company’s operations that you would like more information about if you were an analyst, company manager, or investor.  Your questions should be based on what you learned from step 2 above. The questions should not be easily answered by data you already have! You need to provide background information on why you are asking those questions.  What ratios cause you concern?  What are the “red flags” you spotted in your analysis?.  Consider the following format:  In the ratio analysis we noted _______, therefore we are asking ______. 

Grading Rubric

Your grade will be computed as follows:

PointsDescriptionContent/analysis pointsPresentation Style (Slides and Verbal)Opening50Ratio #1155Ratio #2155Ratio #3155Ratio #4155Ratio #5155Ratio #6155Ratio #7155Ratio #8155Question #1155Question #2155Question #3155Total = 225 points17055

Notes on Presentation Style

Your presentation should include effective speaker’s movements, eye contact and visual aids.

Your presentation should be well organized, coherent, and obviously practiced before delivery.

1. All team members must participate (talk!).  If a team member is not present (with their video camera ON) for the presentation, or does not speak, they will receive a zero score. 

Presentations may/will be recorded by you at your choice of location and posted here for the class to view.  

If you prepare a video: This does NOT have to be a fancy video production with editing. Just present as you would in a live class, but be sure to have good lighting (we need to See you!) and clear sound (we need to HEAR you!) with no background noise.  Upload to YouTube as an unlisted video (not private, not public).

Presentation Do’s and Don’ts

DO provide information visually, not just verbally (but not all of it!) 

DO make the visual presentation able to read (large enough, clear, not too many words, etc.)

DO provide a conclusion of your analysis.

1. DO have lots of energy! Nobody likes a boring, quiet, soft-spoken presenter.

DO make it fun and interesting.

DO rehearse it with your team.

DO include some humor if you can pull it off, even if it’s just goofy.

DON’T read the slides or from your notes (glance at notes but don’t read from them).

DON’T face the screen while talking (face the class/camera).

DON’T be unprepared or tired.

DON’T speak so soft that we can’t hear you.

Plagiarism (cheating)

You will receive a zero for plagiarism. Do not refer to any other person’s thoughts or work; USE YOUR OWN WORDS OR THOUGHTS. Do not copy/paste from the company website, Wikipedia, or other websites, or other people. Also note that use of Artificial Intelligence to prepare your report is considered cheating.  

You should not refer to anything on the internet or any other sources other than your textbook.  Chapter 2 (LO 2.2) and Chapter 13 (LO 13.3) are all that you need.  I recommend watching the Ch 2.2 & Ch 13 LO 3: Tutorials Quiz to help with your analysis. 

How to record your video (If you choose to pre-record)

You can record the video however you want.  It should be a nice, practiced presentation WITH ALL OF YOUR SMILING FACES VISIBLE.  But, you can be creative on how you record it.  Here are some ideas to get you started:

Set up a zoom session for your team.  You can use zoom to record it.  Let me know if you need assistance.

Present together on a Skype call and record the Skype call. This only works for Skype to Skype calls (everyone needs to make a Skype account).  Make sure that you have practiced first, and only record the part you want to upload.  How to Record Skype calls. 

Record your group in a Google Hangout

My understanding is that the video recording feature is no longer free, but you can sign up for a 14 day trial and then cancel. Or, you can use a screen recorder option (like those in the next bullet point) to record your screen during the hangout.

Try a free recording website like: https://www.freeconferencecall.com/video-recording  or use the free version of Screencast-o-Matic.

Have each person video their own part and then one person edit the videos together into one file.  You can use any app you are familiar with. I have heard of this one as well:  https://www.kapwing.com/resources/video-merger-how-to-merge-videos-online-for-free/ (Links to an external site.)

Meet in person and record the video together (not recommended due to COVID-19).  You can use a cell phone camera. 

Again, it doesn’t have to be fancy. Just make sure there is good lighting and audio.

Uploading (if you pre-record)

Your video should be uploaded to Youtube.  Here are the directions on how to upload a video to YouTube. He also gives directions for making the video unlisted.  You do not have to make your video public. You will just need to provide the direct link.

Late policy: One point penalty per MINUTE posted late.

1. How to Upload a video to YoutubeLinks to an external site.