Delta Airlines, Inc. Financial Analysis

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Delta Airlines, Inc.Financial Analysis
Presented By Karen Brown Chintan Patel Pina
Patel
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2003 DELTA SNAPSHOT

• PASSENGERS 104 MILLION
• FLIGHTS 2002 (DAILY)
• DESTINATIONS 497 / 84
• EMPLOYEES 75,000
• REVENUES 13.3 BILLION
• NET INCOME (-773 MILLION)

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Operating Revenues
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Sales Growth
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Net Income
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Long Term Debt
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Ratio Analysis
Delta's 5 - Year Ratio Analysis Delta's 5 - Year Ratio Analysis Delta's 5 - Year Ratio Analysis Delta's 5 - Year Ratio Analysis Delta'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
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Profitability Ratio Analysis
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Delta vs. Industry Ratios
Delta's vs. Industry Ratios Delta's 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
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INDUSTRY
DELTA
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Stock Prices
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RECOMMENDATIONS

• REDUCE SALARY EXPENSES / EMPLOYEES
• SELL OFF PLANES
• INCREASE FUNDING AND RESOURCES TO SONG
• INCREASE INTERNET SALES
• SIMPLIFY PRICE STRUCTURE
• IMPROVE CUSTOMER SERVICE

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QUESTIONS

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