This problem set uses Delta Airlines for ALL questions. To start, go to its investor relations page an
1. Using the firm's financials:
a. Fill the income statement (in million $ ). Expenses without their own line should be grou
b. Create the common size income statement (as a % of operating revenues for that year)
c. Show year-on-year (YoY, 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. Fuelprice ($/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 & equipment lines.
b. Common size balance sheets.
c. Are there any outliers in the balance sheets that you think merit mentioning?
d. For these years, what is the net working capital position? Current ratio? Quick ratio? D
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. DOT:
a. What are the top three markets by share?
b. What happened to passenger yields*
c. What happened to costs per ASM†
d. What do you think this means for the bottom line?
e. What are the top three cix pairs?
d get its latest annual report (10-K). Make sure to use the last 3 full years!
ped under "All other expeines". The net income lines must tie using formulas
ays receivable? Return or assets (ROA)? Return on equity (ROE)’/ What is the latest p e ratio? fuse
Yahoo Finance)
, Total Operating Revenues
Operating Expenses: Aircraft fuel
and related taxes Salaries, wages
and benefits Landing fees and other
rents Depreciation and amortization
Aircraft rent
All other expenses
Total Operating Expenses
Operating Income
Total other income/(expense)
(Loss) Income before taxes
Income tax (benefit) expense
Net (Loss) Income
Actual tax rate
EPS
1. Using the firm's financials:
a. Fill the income statement (in million $ ). Expenses without their own line should be grou
b. Create the common size income statement (as a % of operating revenues for that year)
c. Show year-on-year (YoY, 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. Fuelprice ($/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 & equipment lines.
b. Common size balance sheets.
c. Are there any outliers in the balance sheets that you think merit mentioning?
d. For these years, what is the net working capital position? Current ratio? Quick ratio? D
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. DOT:
a. What are the top three markets by share?
b. What happened to passenger yields*
c. What happened to costs per ASM†
d. What do you think this means for the bottom line?
e. What are the top three cix pairs?
d get its latest annual report (10-K). Make sure to use the last 3 full years!
ped under "All other expeines". The net income lines must tie using formulas
ays receivable? Return or assets (ROA)? Return on equity (ROE)’/ What is the latest p e ratio? fuse
Yahoo Finance)
, Total Operating Revenues
Operating Expenses: Aircraft fuel
and related taxes Salaries, wages
and benefits Landing fees and other
rents Depreciation and amortization
Aircraft rent
All other expenses
Total Operating Expenses
Operating Income
Total other income/(expense)
(Loss) Income before taxes
Income tax (benefit) expense
Net (Loss) Income
Actual tax rate
EPS
