United Airlines and Carnival Corporation Profitability Analysis
Michael Charles
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
This paper will be conducting a profitability analysis between Carnival Corporation and United Airlines as a small sample between two of the biggest American companies that focus travelling by ships and airplanes respectively. A profitability analysis is the process of examining a business’s revenue streams and cost to evaluate its ability to generate profit. The profitability analysis will be conducted by using the annual financial statements from the most recent 5 years ranging from 2020 to 2024 via macrotrends. The five profitability ratios used in this project are the return on assets, return on equity, net profit margin, operating profit margin, and gross profit margin. This project will introduce the two companies, operating characteristics of each company within their respective industry, how much the COVID-19 pandemic affected revenues, how did the companies respond to the pandemic, and whether it is more profitable to run a cruise line or an airline.