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BUSA 111 : Business in a Global Society

Financial Trends

One method for determining how well a company is doing is by looking at the company's financial performance. For this section begin by analyzing the information you found for the quantitative analysis, income statement, and industry data sections of the InfoSearch assignment.

Let's begin with the quantitative analysis. For this question you found the price to earnings (P/E) and earnings per share (EPS) ratios for your company. In comparing Delta to United, Delta's P/E ratio is 29.04 while United's P/E ratio of 9.81–investors are expecting Delta to have higher earning growth in the future compared to United. How does this compare to other companies within the same industry? What other ratios can be used to compare the these companies' financial performance?

Fortune 500 companies are ranked by revenue. How does the revenue of your assigned company compare to that of others in the same industry? This information can be found in a company's income statement, which also includes the company's expenses and profit. Which companies are earning more profit?

Lastly, how does your assigned company compare to the broader marketplace? Download a chart showing the performance of your assigned company's stock price to that of the S&P 500. Has it outperformed the market? In Delta Air Lines' case the company has fared much better in recent years compared to the S&P 500.

List of References

Delta Air Lines, Inc. and S&P 500. (n.d.) [5 Year Stock Price Comparison]. Retrieved June 19, 2015 from Yahoo! Finance.

Mergent. (n.d.). Delta Air Lines, Inc. [Income Statement]. Retrieved June 19, 2015 from Mergent Online database.

Reuters. (2015, July 24). United Continental Holdings, Inc. [Investment Report]. Retrieved from Business Insights: Essentials database.

Reuters. (2015, June 19). Delta Air Lines, Inc. [Investment Report]. Retrieved from Business Insights: Essentials database.