Annual Report Analysis – United Airlines and Carnival Cruises


Assignment 2: Annual Report Review


Due Week 6, Day 7 (225 points)


The specific course learning outcomes associated with this assignment are:


-Analyze financial statements using financial ratios. 

-Analyze and evaluate cash flows over time.

 –Use technology and information resources to research issues in financial management.

-Write clearly and concisely about financial management using proper writing mechanics.




This project requires that you conduct a financial analysis of two, comparable organizations chosen from


the provided listing. Let your professor know which two companies you plan to study before the end of


Week 3, as your selection must be approved. The professor reserves the right to limit the number of


students comparing the same two organizations.




1. Carefully review the annual reports for both organizations. Comment on what approach each


company has taken in reporting to its shareholders.




(This requirement is purposely broad to give

you the freedom to talk about anything under the broad title of “reporting to shareholders”).




2. Using the provided Excel spreadsheet, prepare a ratio analysis for both companies including a


trend analysis for three years. Comment on the significance of the ratios for each company (do


they indicate that things are all right, do they suggest that problems exist, or is it likely that


problems will occur in the future?). Comment specifically on the similarities and differences


among the ratios calculated for both companies and comparison to any benchmark.






Prepare an analysis of the cash flow statements for both companies.

4. List and discuss the importance of the two most significant accounting policies adopted by the


two organizations (you should select the same two policies for both organizations). Explain the


options selected by both companies and comment on any differences that you see. Explain what


other policies the organizations could have selected and state why you think they selected one


policy over another.


5. Provide the URL’s for each company’s Annual Report.


Your assignment should adhere to these guidelines:





Write in a logical, well-organized formal business style. Use Times New Roman font size 12 or

similar, double space, and leave ample white space (i.e., 1-inch margins) per page.






All references must follow JWMI style guide and works must be cited appropriately. Check with

your professor for any additional instructions on citations. Reference pages are not included in


the assignment page length.






On the first page or in a header, include the title of the assignment, the student’s name, the

professor’s name, the course title, and the date.






Faculty members have discretion to penalize for assignments that do not follow these guidelines.

Check with your individual professor if you feel the assignment requires a much longer or shorter


treatment than recommended.