WEB EXERCISE 1· At the start of the chapter, tions were. Let\'s examine this fur
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WEB EXERCISE 1· At the start of the chapter, tions were. Let's examine this further. Go to finance yahoo.com. Enter UAL for we talked about how risky and volatile airlines' opera. United Continental Holdings in the "Get Quotes" box. Go to "Company" aliong 2. Click on "Profile" in the left-hand collumn and write a one-paragraph description 3. Scroll down and click on the "Income Statement." Describe the pattern of change 4. Go to the "Balance Sheet" In one sentence, describe t the left-hand margin. of the company. for Total Revenue" and "Income from Continuing Operations" in one paragraph stockholders' equity and indicate whether this does or does not appear to be a the pattern of change in matter of concern. less promising for the future? and the industry in terms of operating margin? . Click on "Analyst Estimaies. Do UAL's earnings estimates appear to be more or 6. Finally, click on "Competisors." How does UAL. compare to the other airlines will be inrodacod so a table olExplanation / Answer
1. Done
2. United Continental Holdings is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UCH owns and operates United Airlines, Inc. It employees 90,600 people. It operates in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. As of December 31, 2016, it had a fleet of 1,231 aircraft. UCH also sells fuel; and offers maintenance, catering, and ground handling services for third parties
3. Total revenue has decreased in 2016, from 2014. It fell aprox 6% (2.45% yoy) to a level of 36.556 bn in 2016 from the level of 38.901 bn in 2014. But the interesting fact is the income from continuing operations has actually increased has more than doubled from 2014 to 2016 (1132 mn in 2014 to 2263 mn in 2016), which shows that the company did very good in terms of business. On further investigating it is revieled that even though the revenue has decreased, the cost dcreased at a muc steeper rate (from 16.6bn in 2014 to 10.4 bn in 2016, decline of about 40%). This shows that the operational efficieny of the company improved a lot in the last 3 years.
4. The stockholders equity jumped from 2.4 bn in 2014 to 8.66 bn in 2016. It is good as the leverage ratio(Debt/Equity) of the company would decline, hence the company becomes less risky. But at the same time the ROE would shrink, which would be bad on the shareholders of the company.
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