Delta Airlines, Inc. Financial Analysis
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Delta Airlines, Inc. Financial Analysis Presented By: Karen Brown Chintan Patel Pina Patel
description
Delta Airlines, Inc. Financial Analysis. Presented By: Karen Brown Chintan Patel Pina Patel. 2003 DELTA SNAPSHOT. PASSENGERS – 104 MILLION FLIGHTS – 2002 (DAILY) DESTINATIONS – 497 / 84 EMPLOYEES – 75,000 REVENUES – $13.3 BILLION NET INCOME – (-$773 MILLION). - PowerPoint PPT Presentation
Transcript of Delta Airlines, Inc. Financial Analysis
Delta Airlines, Inc.Financial Analysis
Presented By:
Karen Brown
Chintan Patel
Pina Patel
2003 DELTA SNAPSHOT
PASSENGERS – 104 MILLION FLIGHTS – 2002 (DAILY) DESTINATIONS – 497 / 84 EMPLOYEES – 75,000 REVENUES – $13.3 BILLION NET INCOME – (-$773 MILLION)
Operating Revenues
0
2000000000
4000000000
6000000000
8000000000
10000000000
12000000000
14000000000
16000000000
18000000000
1998 1999 2000 2001 2002
Total Operating Revenue
DELTA AIR LINES INC /DE/
Sales Growth
-0.2
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
1998 1999 2000 2001 2002
Sales Growth
DELTA AIR LINES INC /DE/
Net Income
($1,500,000,000)
($1,000,000,000)
($500,000,000)
$0
$500,000,000
$1,000,000,000
$1,500,000,000
1998 1999 2000 2001 2002
Net Income
DELTA AIR LINES INC /DE/
Long Term Debt
$0
$2,000,000,000
$4,000,000,000
$6,000,000,000
$8,000,000,000
$10,000,000,000
$12,000,000,000
Year
Deb
t $ Series1
Series1 $1,533,000,000 $4,144,000,000 $5,797,000,000 $8,279,000,000 $10,074,000,000
1998 1999 2000 2001 2002
Ratio AnalysisDelta's 5 - Year Ratio Analysis
1998 1999 2000 2001
Liquidity Ratios
Current Ratio: 0.50 0.61 0.56 0.60
Quick Ratio: 0.33 0.38 0.40 0.35
Debt/Equity 0.57 1.08 2.34 9.39
Asset Management Ratios
Asset Turnover: 0.94 0.87 0.61 0.55
Cash Conversion: 30.90 34.40 30.20 28.30
Profitability Ratios
Profit Margin on Sales: 7.41% 4.87% -8.86% 9.67%
Return on Total Assets: 7.00% 4.24% -5.14% -5.33%
Return on Equity: 27.55% 17.44% -29.33% -117.39%
Profitability Ratio Analysis
PROFITABILITY ANALYSIS
-150.00%
-100.00%
-50.00%
0.00%
50.00%
1998 1999 2000 2001
YEAR
RA
TIO
(%
)
Profit Margin onSales:
Return on TotalAssets:
Return on Equity:
Delta vs. Industry Ratios
Delta's vs. Industry Ratios
Delta Industry
Liquidity Ratios
Current Ratio: 0.75 1.42
Quick Ratio: 0.53 1.19
Debt/Equity 16.33 2.1
Asset Management Ratios
Inventory Turnover 65.85 42.5
Asset Turnover: 0.53 0.83
Efficiency Ratios
Rev/ Emp 177,737.00 188,899.00
Profitability Ratios
Profit Margin: -5.81% 4.94%
Return on Equity: -121.90% 12.04%
Return on Equity: Deltas vs. Industry
-150.00%
-100.00%
-50.00%
0.00%
50.00%
0 0.5 1 1.5 2 2.5Return on Equity:
DELTA
INDUSTRY
Stock Prices
RECOMMENDATIONS
REDUCE SALARY EXPENSES / EMPLOYEES
SELL OFF PLANES
INCREASE FUNDING AND RESOURCES TO SONG
INCREASE INTERNET SALES
SIMPLIFY PRICE STRUCTURE
IMPROVE CUSTOMER SERVICE
QUESTIONS
???
