I am looking for American airlines
Return on sales
Eeturn on sales
Earming per share
price earnings ratio
and state the company solvency, liquidity and profitability© BrainMass Inc. brainmass.com June 3, 2020, 6:20 pm ad1c9bdddf
The following info was obtained from the 2004 American Airlines annual report:
Current Ratio = Current Assets / Current Liabilities
CR = 4,971 / 7,018
CR = 0.71
An indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. Current ratio is equal to current assets divided by current liabilities. If the current assets of a company are more than twice the current liabilities, then that company is generally considered to have good short-term financial strength. If current liablities exceed current assets, then the company may have problems meeting its short-term obligations.
Return on Sales = Net Income Before Interest & Tax / Sales
ROS = -144 / 18,645
ROS = -0.0077
This measure is helpful to management, providing insight into how much profit is being produced per dollar of sales.
Earnings Per Share = Net Income - Dividends on Preferred Stock / Avg Outstanding Shares
EPS = 18,645 / 3,900
EPS = 4.74
This is the single most popular variable in dictating a share's price. EPS indicates the profitability of a company. It is also a major component of the price-to-earnings valuation ratio
For example, assume that a company has a net income of $25 million. If the company paid out $1 ...
The financial statements and ratios for the return on sales are determined.