Corporation Analysis: Delta Airline Inc
Autor: johnmacleod1978 • June 26, 2014 • Case Study • 704 Words (3 Pages) • 1,465 Views
Corporation Analysis: Delta Airline Inc
John Macleod
FIN/571
March 31, 2014
Reza Rafi
Corporation Analysis: Delta Airline Inc
The chosen corporation for this assignment is Delta Airline Inc. This paper will show a comparative and ratio analysis by the comparison of a three year time frame. The analysis will display the processes used to generate the horizontal, vertical and ratio analysis for year 2011, 2012, and 2013. The paper will also include a comparison of how Delta Airline measures up against others in their business industry. This paper will also include Excel spreadsheets of financial statements for Delta Airlines Inc various areas of business. Each spreadsheet will display the yearly assets, liabilities, and income Delta Airlines acquired.
Analysis
The main purpose of scrutinizing a company’s financial data is to gauge the current health of the business, analyze how its reported figures are derived, and to predict future profitability and sustainability. Exploring this sustainable income entails utilizing certain analytical tools such as comparative horizontal and vertical analysis, and ratio analysis. The comparative tools provide insight on a company’s profitability, growth, and sustainable income by comparing financial data of the company over periods, comparing to competitors financial standings, and comparing to industry averages. Similarly, ratios provide insight on a company’s sustainable income by measuring for liquidity, solvency, and profitability by using the company’s internal figures for sales, debts, inventories, cash, etc. among others.
Within this report the use of different ratios were used as the primary tool in determining the financial stability of Delta Airlines Inc. Ratio analysis is a useful way of gaining a "snapshot" picture of a company. These ratios can be analyzed to identify the company's strengths and weaknesses and useful insights can be gained through the process.
The trend analysis comparing the intra-company changes on the Balance Sheet and Income Statement from the years 2011 to 2012 to 2013 indicate an increase in total assets as well as an increase in net income.
The liquidity
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