European Business Schools Librarian's Group

Les Cahiers de Recherche,
HEC Paris

No 780: Income statements "by nature" and analysis of company performance : an application of US airlines companies

Hervé STOLOWY (), Yuan DING and C.Richard BAKER

Abstract: Since September 11, 2001; and during the ensuing economic slowdown, U.S airline companies have experienced significant financial difficulties, including bankruptcies and near bankruptcies on the part of several major carriers. In an economic setting where U.S. airlines are struggling to achieve or maintain profitability, it is important for accountants, auditors and financial analysts to be able to analyze the relative performance of airline companies. In the airline industry, income statements are normally prepared "by nature" rather than "by function". This differs from the usual presentation found in the income statements of most American companies. This case demonstrates how to perform a comparative financial statement analysis when an income statement is prepared "by nature", by applying a tool called the "Statement of Intermediate Balances". The three companies studied in this case are United Airlines, Delta Air Lines and Southwest Airlines

Keywords: financial statement analysis; income statement format; income statement by nature; income statement by function; statement of intermediate balances

JEL-codes: L15

44 pages, January 1, 2003

Full text files

726b12986ddcaeec5ef64318fa414a08.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Antoine Haldemann ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-02-22 16:52:56.