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Annual Report Delta Airlines, Inc. Bradley Frost ACG2021 Section 080

Annual Report Delta Airlines, Inc. Bradley Frost ACG2021 Section 080. Executive Summary. Delta has fallen on hard times after two consecutive years of great losses, Delta has filed for Chapter 11 bankruptcy. As of October 13 th , Delta will be delisted from the New York Stock Exchange

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Annual Report Delta Airlines, Inc. Bradley Frost ACG2021 Section 080

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  1. Annual ReportDelta Airlines, Inc.Bradley FrostACG2021Section 080

  2. Executive Summary Delta has fallen on hard times after two consecutive years of great losses, Delta has filed for Chapter 11 bankruptcy. As of October 13th, Delta will be delisted from the New York Stock Exchange www.delta.com

  3. Part A. Introduction • CEO: Gerald Grinstein • Home Office: Atlanta, Georgia • End of last fiscal year: December 31st, 2004 • Delta is the second largest air carrier in the world • Delta offers flights to 502 destinations in 88 countries

  4. Part A. Audit Report • Independent Auditors: Deloitte & Touche LLP • Deloitte & Touche have stated that Delta Airlines, Inc. has undergone continued loss. They have serious liquidity issues and more than likely will have to seek protection under Chapter 11 bankruptcy. They also stated that Delta has presented all financial information fairly and have complied with accounting principles generally accepted in the United States

  5. Part A. Stock Market Information • Most recent price of the company’s stock: $0.85 • Twelve month trading range of the company’s stock • Payment of dividends has been suspended as of December 28th, 2003 • Date of the above information: October 7, 2005 • In my opinion, investors should hold on to their stock in Delta. Things can only get better!

  6. Part B. Industry Situation and Company Plans The airline industry has changed drastically due to deregulation. Delta has added such things as an improved, user friendly website and has refurbished aircraft interiors. They are also trying to compete with the low cost carriers by becoming a more efficient and simplified airline. Due to their chapter 11 filing, Delta will under go a massive restructuring initiative. http://delta.m7z.net http://news.delta.com

  7. Part C. Income Statement Delta uses a single step income statement Delta had increased losses over the last two years

  8. Part C. Balance Sheet Assets have gone down, while liabilities and shareholders deficit has gone up

  9. Part C. Statement of Cash Flows Cash flows from operations are greater than the net loss over the past two years. The company sold a lot of their investments Delta’s primary source of financing is long term loans. Overall, cash has decreased significantly over the past two years.

  10. Part D. Accounting Policies Delta prepares financial statements in conformity with GAAP. Passenger revenues are recorded when transportation is provided. Estimates and assumptions are made based on historical experience.

  11. Part E. Financial AnalysisLiquidity Ratios

  12. Part E. Financial AnalysisProfitability Ratios

  13. Part E. Financial AnalysisSolvency Ratio

  14. Part E. Financial AnalysisMarket Strength Ratios As of December 28th,2003 Delta no longer pays out dividends

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