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
Total Operating Revenue
18000000000
16000000000
14000000000
12000000000
10000000000
DELTA AIR LINES INC /DE/
8000000000
6000000000
4000000000
2000000000
0
1998
1999
2000
2001
2002
Sales Growth
Sales Growth
0.15
0.1
0.05
0
DELTA AIR LINES INC
-0.05
-0.1
-0.15
-0.2
1998
1999
2000
2001
2002
Net Income
Net Income
$1,500,000,000
$1,000,000,000
$500,000,000
$0
DELTA AIR LINES IN
($500,000,000)
($1,000,000,000)
($1,500,000,000)
1998
1999
2000
2001
2002
Long Term Debt
$12,000,000,000
$10,000,000,000
Debt $
$8,000,000,000
$6,000,000,000
Series1
$4,000,000,000
$2,000,000,000
$0
Series1
1998
1999
2000
2001
2002
$1,533,000,000
$4,144,000,000
$5,797,000,000
$8,279,000,000
$10,074,000,000
Year
Ratio Analysis
Delta's 5 - Year Ratio Analysis
1998
1999
2000
2001
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
0.94
0.87
0.61
0.55
30.90
34.40
30.20
28.30
Profit Margin on Sales:
7.41%
4.87%
-8.86%
9.67%
Return on Total Assets:
7.00%
4.24%
-5.14%
-5.33%
27.55%
17.44%
-29.33%
-117.39%
Liquidity Ratios
Asset Management Ratios
Asset Turnover:
Cash Conversion:
Profitability Ratios
Return on Equity:
Profitability Ratio Analysis
PROFITABILITY ANALYSIS
RATIO (%)
50.00%
0.00%
-50.00%
1998
1999
2000
2001
Profit Margin on
Sales:
Return on Total
Assets:
-100.00%
Return on Equity:
-150.00%
YEAR
Delta vs. Industry Ratios
Delta's vs. Industry Ratios
Delta
Industry
Current Ratio:
0.75
1.42
Quick Ratio:
0.53
1.19
Debt/Equity
16.33
2.1
65.85
42.5
0.53
0.83
177,737.00
188,899.00
-5.81%
4.94%
-121.90%
12.04%
Liquidity Ratios
Asset Management Ratios
Inventory Turnover
Asset Turnover:
Efficiency Ratios
Rev/ Emp
Profitability Ratios
Profit Margin:
Return on Equity:
Return on Equity: Deltas vs. Industry
50.00%
INDUSTRY
0.00%
0
0.5
1
1.5
-50.00%
-100.00%
-150.00%
2
2.5
Return on Equity:
DELTA
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

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