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IntroductionThepurposeofthisresearchistoidentifyfactorsthateffectthefinancialstatusofAmericanAirlines(AAL)usedstockdatafromtheperiod20132017forAAL,SPY500and(WestTexasIntermediate)crudeoilpriceconductedcorrelationandmultiplelinearregressionanalysisovertheaforementionedperiodcalculatedthebetasCorrelationthestatisticalstrengthbetweentwoormorevariablestoshowhowrelatabletheyMultiplelinearregressionmodels/analyzestherelationshipbetweentwoormorevariablesBetaisthemeasureofmarketvolatilityLastly,gatheredthefinancialstatementsfromtolookatkeyfinancialchanges,balancesheetandincomestatementAmerican Airlines Inc.: A Financial OverviewResultsFromtheinformationgatheredforAAL,thereareseveraltrendsworthnoting Beta returnsveryvolatilewithrespecttothemarket(SPY),thepeakbeing94in2017ThebetaofWTInegative • Financial StatementsCashcashequivalents,andtotal • Ratios ThecurrentratioshowshassufficientliquiditytomeetitsshorttermdebtProfitmarginhasdecreased,hintingthattotalcostsincreasingfasterthantherevenues Table1: Elements of Balance Sheet of AAL. 2013 2017 Valentin KantchevAdvisor: Dr. JayendraGokhale Table 2: Elements of Income Statement of Apple Inc. 2013 2017 References : aacommergentonlinecominvestopediacomyahoocom/financeMethodcompleteresearch,performedthefollowingGatheredstockdatafromYahoofinanceWorkedwiththeclosingpricesofthethreeaforementionedstocks,andcomputedtheirreturnstoshowdependenceovertimeCorrelationandmultiplelinearregressionanalysisObtainedthefinancialstatementsofComputedthefinancialratios SPY Figure 1: of AAL 2013 2017 Liquidity Current Ratio1.4401.592 Quick ratio1.3511.473 Cash ratio0.1340.173 2014 DuPont 20162015 Profit Margin0.0670.186 Asset turnover0.7840.847 Financial Leverage13.5478.592 0.7071.350 Table 3: Liquidity Ratios Table 4: DuPont Ratios -0.06-0.04-0.02 Figure 2: of AAL 2013 2017 Abstract:ThegoalofresearchisprovidedetailedfinancialinformationonhowAmericanAirlineshasbeenperformingoverthepastfiveyearsThisincludesdetailedanalysisofthecompany'sfinancial,stock,andoperationalperformanceThishasbeenachievedthroughstatisticalmethods,interpretationofthefinancialstatements,andcalculationofthefinancialratiosBasedonthesemethodscanobservethatevenasthecompanyisgrowingitssales,itsoperationalmarginhasbeendecreasingsince Report DateCash & Cash Equivalents 295,000322,000390,000994,0001,140,000Total Current Assests9,146,00010,324,0009,985,00012,112,00014,323,000Total Assests51,396,00051,274,00048,415,00043,771,00042,278,000Total Current Liabilities14,964,00013,872,00013,605,00013,435,00013,806,000Long-Term Debt25,301,00024,573,00020,807,00017,963,00016,825,000Total Liabilities47,470,00047,489,00042,780,00041,750,00045,009,000Total Shareholder's Equity3,926,0003,785,0005,635,0002,021,000-2,731,000 Report DateNet Sales42,207,00040,180,00040,990,00042,650,00026,743,000Cost of Sales36,672,00033,573,00033,392,00036,857,00024,186,000Gross Margin5,535,0006,607,0007,598,0005,793,0002,557,000Selling & General Expense1,477,0001,323,0001,394,0001,544,0001,158,000Total Operating Expense38,149,00034,896,00034,786,00038,401,00025,344,000Operating Income (Loss)4,058,0005,284,0006,204,0004,249,0001,399,000 Table 5: Correlation of AAL with SPY YearCorrelation