This problem set uses Alleglaat Trevel Company for ALL questions. To start, go to its
1. Using the firm's Financials:
a. Fill the income statement (in million $ ). Expenses without their own line sh
b. Create the common size income statement (as a % of operating revenues fo
c. Show year-on-year (VoY, in %) growth
d. What happened to the profit margins?
e. What are the actual tax rates? EPS?
2. Using the operating stats, what is the YoY growth rate for:
a. Yield?
b. Operating expense per available seat mile (CASM)?
c. Revenue passenger miles (RPMs)?
d. Fuel price ($/gallon)?
e. What factors, other than the pandemic, are affecting margins the most?
3. Using the firm's balance sheets, show:
a. Balance sheets as shown (in million $); show only net property & equipm
b. Common size balance sheets,
c. Are there any outliers in the balance sheets that you think merit mentionin
d. For these years, what is the net working capital position? Current ratio? Q
4. Using the Statement of Cash Flows, which items stand out to you and why?
5. Go to the carrier section in the Bureau of Transportation Statistics of the U.S. D a Wh
are the top three markets by share?
b. What happened to passenger yields?
c. What happened tn costs per ASM?
d. What do you think this means for the bottom line?
e. What are the top three city pairs?
investor relations page and get its latest annual report (10-K). Blake sure to use t
ould be grouped iuider "All other expenses". The net incoiiie lines must tie using formii
r that year)
ent lines.
uick ratio? Days receivable? Return on assets (ROA)? Return on equity (ROE)‘/ What
OT:
he last 3 full years!
las
is the latest p/e ratio? (use Yahoo Finance)
Mi oo$ n n
, 2020 2021 2019 2020
Total Operating Revenues 990 1.708 100% 100%
Operating Expenses: Salaries and
benefits 37b 485 24% 38%
Aircraft fuel 222 440 23% 22%
Station operations 145 243 9% 15%
Depreciation and amortization 176 181 8% 18%
Maintenance and repair 64 106 5% 6%
All other expenses 286 (10) 10% 29%
Total Operating Expenses 1.445 80 o 128%
###
Operating Income (281) 263 20% -28%
Total other income/(expense) 80 66 3% 8%
(Loss)/Income betore taxes (361) 197 6 o -36%
Income tax/(benefit) expense (177) 4? 4% -18%
Net (Loss) Income (184) 152 13% -19%
Actual tax rate -49% 23%
EPS (not in USD millions ) (11.53) 8.68
1. Using the firm's Financials:
a. Fill the income statement (in million $ ). Expenses without their own line sh
b. Create the common size income statement (as a % of operating revenues fo
c. Show year-on-year (VoY, in %) growth
d. What happened to the profit margins?
e. What are the actual tax rates? EPS?
2. Using the operating stats, what is the YoY growth rate for:
a. Yield?
b. Operating expense per available seat mile (CASM)?
c. Revenue passenger miles (RPMs)?
d. Fuel price ($/gallon)?
e. What factors, other than the pandemic, are affecting margins the most?
3. Using the firm's balance sheets, show:
a. Balance sheets as shown (in million $); show only net property & equipm
b. Common size balance sheets,
c. Are there any outliers in the balance sheets that you think merit mentionin
d. For these years, what is the net working capital position? Current ratio? Q
4. Using the Statement of Cash Flows, which items stand out to you and why?
5. Go to the carrier section in the Bureau of Transportation Statistics of the U.S. D a Wh
are the top three markets by share?
b. What happened to passenger yields?
c. What happened tn costs per ASM?
d. What do you think this means for the bottom line?
e. What are the top three city pairs?
investor relations page and get its latest annual report (10-K). Blake sure to use t
ould be grouped iuider "All other expenses". The net incoiiie lines must tie using formii
r that year)
ent lines.
uick ratio? Days receivable? Return on assets (ROA)? Return on equity (ROE)‘/ What
OT:
he last 3 full years!
las
is the latest p/e ratio? (use Yahoo Finance)
Mi oo$ n n
, 2020 2021 2019 2020
Total Operating Revenues 990 1.708 100% 100%
Operating Expenses: Salaries and
benefits 37b 485 24% 38%
Aircraft fuel 222 440 23% 22%
Station operations 145 243 9% 15%
Depreciation and amortization 176 181 8% 18%
Maintenance and repair 64 106 5% 6%
All other expenses 286 (10) 10% 29%
Total Operating Expenses 1.445 80 o 128%
###
Operating Income (281) 263 20% -28%
Total other income/(expense) 80 66 3% 8%
(Loss)/Income betore taxes (361) 197 6 o -36%
Income tax/(benefit) expense (177) 4? 4% -18%
Net (Loss) Income (184) 152 13% -19%
Actual tax rate -49% 23%
EPS (not in USD millions ) (11.53) 8.68
