American Airlines Vertical And Horizontal Analysis

Decent Essays
Based on the Income Statement for American Airlines, I am going to conduct a vertical and a horizontal analysis.
As for the vertical analysis, the income statements are in the percentage terms. Therefore, the trend of the operating revenue section percentage, you can see it is fluctuating. The total operating revenue is 100% in both years despite the fact of the decline in dollar change. Likewise, the turnouts have not declined and the revenue at the operating level is more reliable. The two most significant are the operating income percentage and the net income percentage. The result shows an indicator of company’s success in operation. Similarly, the net income percentage discloses the company’s general profitability from 2014 to 2015

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