Abstract This paper presents a quantitative analysis of financial statements 2004-2002 for Delta Airlines. The paper presents a financial ratioanalysis, a cash flow analysis and a common size balance sheet analysis. The paper looks at revenue and profit trends and includes several tables.
From the Paper "This report analyses the financial statements of Delta Airlines Inc. Included in the analyses are the company's financial statements for ther eporting years ending ..."
Abstract Today, DeltaAirLines, Inc. is an air carrier that provides scheduled air transportation for passengers and cargo throughout the United States and around the world. To identify Delta's overall domestic and global strategies to maintain and increase its market share, this paper provides a brief company profile for Delta and a current problem that has adversely affected the company's performance, followed by an assessment of a potential solution for the company's predicament today and in the future. A summary of the research is provided in the conclusion.
From the Paper "As early as mid-1999, though, Delta was already targeting foreign airlines for strategic alliances. For instance, in an article entitled, "Air France to Set up Alliance with U.S. Delta Airlines," it was reported that France's national carrier Air France announced intentions to establish a strategic partnership with the U.S. Delta Airlines pursuant to both airlines' intentions to expand into a global marketplace by establishing alliances with other air companies. This move also involved Delta disengaging itself from its relationship with Swissair, Sabena and Austrian Airlines -- a move that was not without controversy."
Tags: airtran, aviation, jetblue, lufthansa, southwest, united
Abstract This paper explains that RatioAnalysis is an early warning indicator that enables the business owner and manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. The author relates that RatioAnalysis is done by comparing the specific company's ratios with the average of similar businesses and comparing the business's own ratios for several successive years, watching especially for any unfavorable trends that may be starting. The paper states that the current ratio measures the ability of the firm to pay is current bills, while still allowing for a safety margin above the required amount needed to pay current obligations.
Table of Contents
Liquidity Ratios Current Ratio Quick Ratio Net Working Capital
Activity Ratios Days Sales Outstanding
Average Payment Period
Fixed Assets Turnover
Total Asset Turnover
Inventory Turnover
Debt Ratios Debt Ratio Debt to Equity Ratio Times Interest Earned
Fixed Payment Coverage Ratio Profitability Ratios Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Earnings per Share
From the Paper "The ROI is determined by multiplying the Total Asset turnover by the Net Profit Margin. The figure is meaningful because it shows how well a company uses its assets to generate profits,. The basic formula is as follows:
ROI = Total Asset Turnover x Net Profit Margin
The DuPont method allows the firm to break down its return on investment into a profit on sales component and an asset efficiency component. Typically, a firm with a low net profit margin would have a total asset turnover. The relationship between the net profit margin and Total Asset turnover is largely dependent on the industry the firm operates."
Abstract In this article, the writer analyses, compares and contrasts the financial performance and position of John Lewis Plc, and Marks & Spencer Plc, mainly through the process of the ratioanalysis of the financial statements of the two companies. The writer provides a brief introduction of the two companies under discussion, such as their background information, similarities and differences and their core business. The writer deals with calculations of important financial ratios of the two companies and then analyses these figures. The writer compares and discusses the ratios in detail, discussing possible causes of changes and fluctuations and coming to various conclusions about the performance of the two companies. In addition, the writer looks at certain limitations of the exercise of ratioanalysis, emphasising the fact, that even though ratioanalysis is a great means of understanding the financial position of a company better, there are still many other factors which can impact those numbers but are difficult to quantify. The writer concludes by highlighting the main findings of the report and presenting a personal opinion on the attractiveness of two companies from an investor's viewpoint.
Outline:
Introduction
Analysis of the Ratios Profitability Ratios Gross Profit Ratio Net Profit Ratio Return on Capital Employed
Liquidity Ratios Activity Ratios Net Asset Turnover Ratio Stock Holding Period
Debtor Days
Creditor Days
Gearing Ratios The Limitations of the Exercise
General Limitations
Company Specific Limitations
Conclusions
From the Paper "John Lewis, increased its net profit ratio from 4.31% to 4.49% which is an increase of 4.18%. In regard to turnover, JLP's turnover increased from L4169.1 in 2003 to L4499.5 in 2004, which is an increase of nearly 8%. This shows that in terms of volume, it did a good job, but in terms of efficiency it worsened, as even though there was a volume increase of 8%, the increase in net profit ratio was only 4.18%. Most probable reasons for this could be, there was in increase in administrative expenses, or other overhead expenses, which does reflect poor efficiency. However it is possible that the firm was looking to increase market share quickly and hence might have spent an above average expenditure on things like advertising, which helped increase volume, but affected the bottom line. In this case, the investment may not have shown immediate results, but may improve turnover, and margins in the longer run."
Abstract This paper focuses on two large retailers in the area of retail home improvements, Lowes and Home Depot, and compares and contrasts their financial ratios in a five-year trend table along with the most recent industry averages. The information presented in this report can be used to help determine the over-all financial status of these two companies.
Financial Ratios Used
Home Depot
Lowes
Efficiency RatioAnalysis Liquidity RatioAnalysis Leverage Analysis Profitability Analysis
From the Paper "The inventory turnover ratio shows how many times per year a business can turn-over its inventory. In other words, this number represents how many times the business sells out of its inventory in a given year. This ratio is calculated by taking the cost of goods sold and dividing it by the average amount of inventory the business carries. Notice that these ratios are determined by the cost of goods sold because the inventory figures are carried on the boots at cost, not the price the merchandise will eventually sell for (Brealey, pg. 142). When comparing Lowe's and Home Depot to the industry average, we see that both companies' ratios were 5.0 for the year 2003 and the industry average was 4.8. This means that for the year 2003, both Lowe's and Home Depot were able to turn over their inventory a bit faster than the industry as a whole. "
Abstract This paper presents a capital budgeting analysis of Johnson & Johnson who manufactures and markets pharmaceuticals for both the health care and consumer markets. The paper examines their solvency and liquidity, as well as their growth over the pasty five years. The paper then analyzes their consistently high margins and discuses a financial ratioanalysis of the company. The paper contains tables.
Table of Contents:
Executive Summary
Financial RatioAnalysis Estimate of Capital Structure
Weighted Average Cost of Capital
Cash Flow Estimation
Capital Budgeting Analysis
From the Paper "The time frame for profitability is also fairly long. On a machine with a life span of eight years, it takes almost 6 full years to realize a payback. Remember that the profitability is highly sensitive to shifts in unit cost and unit price. Six years is a long time for the cost structure of the investment to change. If price pressures are felt, the project would become unprofitable almost immediately if they are unable to squeeze a corresponding cost decrease from their suppliers. For example, if at year three the unit price is squeezed, down to $195, and the suppliers cannot or will not adjust their prices to JNJ accordingly, the project's NPV becomes -106.48. This illustrates the real risk that price pressures have, even halfway through the project's life span."
Abstract This paper is an analysis of a 2002 case of Revlon, Inc. focusing on marketing and financial performance of the company. It looks at the company's strategic focus as a major problem, resulting in a net sales slide. The paper performs an internal analysis, a SWOT analysis, and recommends a new strategy.
From the Paper "The major problem facing Revlon was its strategic focus. The company's strategies appear to be focused on selling the wrong products to the wrong target market. The strategy focus appears to doom Revlon to a..."
Abstract This paper describe the South African Breweries and its 2002 acquisition of Miller Brewing Company. The author analyzes the period before the acquisition that describes the company at that time, identifies issues and problems and the company's performance, strategy and future. The investigation includes Five-Forces and SWOT analysis.
From the Paper "South African Breweries was a large firm operating as a multinational brewer in the time of this case. In, however, the status of the company in the industry changed with its acquisition of Miller Brewing Co in the United States. South African Breweries renamed itself SABMiller, PLC.. The acquisition of Miller Brewing boosted London-based SABMiller to the number two position in the global beer industry. The primary focus of this case analysis is on the company's strategy and performance prior to the acquisition.
Abstract There is no question that safety measures substantially contribute to the cost of purchasing an aircraft, but the cost of safety only begins with the purchase price. Further costs are incurred in performing, logging, and storing records of maintenance procedures and routine safety inspections. This paper explains, however, that it is not possible to gauge the worth of a human life in terms of dollars, and those trusting their lives to experienced pilots and proven aircraft need to be assured that their choice to fly was a prudent one. This research shows that the effects of deregulation have created an enormous increase in air travel, as well as private ownership of aircraft. The aviation industry continues to demonstrate significant progress in achieving better safety records and enjoys an enviable safety reputation. This paper provides a review of the literature to examine the human factors as well as the hardware involved in ensuring safe air travel, followed by a description of the research methodology used. The results of the research are followed by a discussion of the issues identified and the conclusions reached as a result. The research project recommendations conclude the paper.
Acknowledgements
Abstract
List of Tables
List of Figures
Chapter
I Introduction
II Review of Relevant Literature and Research.
III. Research Methodology.
Research Technique
Research Design
Survey Population
Sources of Data
The Data Gathering Instrument
Pilot Study
Pretest
Distribution Method
Reliability
Validity
Treatment of Data and Procedures
IV. Results
V. Discussion
VI. Conclusions
VII. Recommendations
References
Appendixes
From the Paper "The first successful airplane flights did not take place until 1903. Yet today, airplanes affect the lives of people almost everywhere. Giant airliners carry passengers and cargo between the world's major cities in a matter of hours. Planes and helicopters rush medicine and other supplies to the farthest islands and deepest jungles. Farmers use airplanes to seed fields, count livestock, and spray crops. Aviation has also changed the way nations make war. Modern warfare depends on the instant striking power of jet fighters and bombers and the rapid supply capabilities of jet transports. Helicopters and other special aircraft have also been important in military aviation over the last 40 years. Hundreds of thousands of airplanes are used throughout the world. They range from small planes with room for only a pilot to enormous jumbo jets, which can carry hundreds of passengers. To produce and operate all these airplanes requires the skills of millions of workers in many countries--from the engineers who design the planes to the mechanics and pilots who service and fly them. Many government agencies also work to make flying safer and more dependable. All these activities together make up the aviation industry. The industry's two major branches are the manufacture of aircraft and aircraft components, such as engines, and the operation of airlines. The manufacture of aircraft, together with the manufacture of spacecraft, missiles, and related electronic equipment, is often called the aerospace industry."
Abstract The paper attempts to identify the economic and industry specific aspects of varying elasticities of demand for air travel in the United States. The paper explores the consumer's demand in accordance with the recent price increase trends in air travel. The paper then proposes a research study to better measure demand for air travel in the U.S. airline industry.
Outline:
Summary and Introduction
Air Travel Demand Elasticity Ratios Literature Review
Methods for Measuring Demand for Air Travel in the U.S.
From the Paper "The concept of elasticity involves the considerations for the occurring trends with consumer demand for a product, good or service that is increasing in price (Moffatt, 2005). As history has shown, when the price of a good or service climbs, the consumers resulting demand will decrease.
"Often, the consumer may begin purchasing less, taking advantage of similar goods or services of a competitor or withdraw entirely from the good or service that is increasing in price. To the degree to which demand decreases while product or service prices climb, the higher the price elasticity of demand. The price elasticity of demand is used to measure the exact economic scale of the correlation between the variances in the degree of demand for a good or service and the changes to their price."
Abstract This paper explores the financial condition of Target Stores by examining financial ratios. It describes financial ratioanalysis as a useful technique to measure, compare and evaluate financial conditions and performance. The author provides information on Target's liquidity ratios and leverage.
From the Paper "Target Corporation is a growth company focused exclusively on general merchandise retailing. Its principal strategy is to provide exceptional value to American consumers through multiple retail formats ranging ..."
Tags: Balance Sheet, income statement, cash flow, financial analysis, ratioanalysis, efficiency ratios, leverage ratios, liquidity ratios and profitability ratios, current ratio, quick ratio, times interest earned, debt to equity
Abstract This paper presents a brief financial analysis of the Exxon Mobil Corporation, which ranks second on Fortune 500's list of America's largest corporations. The paper specifically conducts a ratioanalysis and trend analysis for Exxon Mobil in order to analyze statistics for a given period and to provide insight into the company's long-term financial situation.
Outline:
Current Ratio Quick (Acid-Test) Ratio Inventory Turnover
Average Collection Period
Total Asset Turnover
Debt to Equity Ratio Net Profit Margin
Price to Earnings Ratio
From the Paper "Inventory Turnover is an important ratio that reveals the number of times the average inventory is completely swapped-out, with a higher number indicating better efficiency at moving product. It is calculated by dividing cost of goods sold by average inventory (beginning + ending inventory divided by 2). Exxon Mobil reported, in millions, $284,334 and $281,658 for cost of goods sold; as well as 9404 and 10018 in average inventory, respectively, for the years 2005 and 2006.
"The resulting ratios are 30.24 for 2005 and 28.12 for 2006. This indicates a decrease in the rate of inventory turnover, but may not by itself indicate any particular problems; since many external factors may influence this ratio."
Abstract The paper focuses on leverage ratios, liquidity ratios, efficiency ratios and profitability ratios as they relate to NutriSystem, Inc. (NTRI). The paper aims to determine some financial strengths and weaknesses of the firm and to suggest some changes to NTRI's future plans to improve the firm's financial performance. The paper provides the figures and shows how NTRI appears to be in sound financial health. According to the paper, a few minor adjustments to borrowing policies and credit policies may be in order.
From the Paper "Leverage ratios are used to measure the relationship between debt and equity within the firm, or how much financial leverage the firm has taken on. A common leverage ratio used is the total debt ratio, which is simply the total liabilities divided by the total assets. In the case of NTRI the total debt ration is 0.27, a pretty respectable figure. This ratio shows that for every 1 dollar in assets the firm is only carrying 27 cents in liabilities. Because this ratio is low NTRI has the opportunity to take on more debt should the need arise."
This paper defines the term accounting ratios and details why they are a significant tool applied by accountants when presenting accounting statements.
Abstract The writer of this paper examines the importance of accounting ratios in business. Accounting ratios illustrate the present as well as the prospective, so that shareholders can visualize how much gain a business attained, the total worth of the assets and the level of cash reserves available. This well-researched paper discusses the advantages and disadvantages of accounting ratios. One significant drawback of the accounting ratio is that it depends too heavily on the conventional costs that lead to twists in quantifying performance. Ratios are required to be represented meticulously. They can entail the evidences to the performance of the company or financial environment. However, they are unable to demonstrate whether the performance is good or bad out their own. The writer details the manner in which the final figures of accounting ratios are achieved, while discussing the fact that these ratios necessitate some quantitative information for an informed analysis to be made. The writer contends and clearly explains why accounting ratios are completely dependent on the supplied data which may or may not be accurate.
Table of Contents:
Introduction
Discussion
Conclusion
References
From the Paper "A markedly low accounts ratio may give rise to angry suppliers and remarkably high inventory turnover ratios may lead to supply shortages and angry customers. The one that is correct for one company may not be considered appropriate for another one. Besides, no two companies are found to be similar irrespective of the fact that they are competitors in the same industry or market. Application of ratios to evaluate one company with another provides misleading information. Businesses may be within the same industry but have distinguished financial and business risk. Ratios are completely dependent on the data that may or may not be accurate."
Abstract This paper compares the financial statement analysis of the Walt Disney Company. It compares information on the company to the industry medians/averages and calculates ratios. The author interprets how the company's ratios compare to those of the industry median.
From the Paper "The Walt Disney Company together with its subsidiaries is a diversified worldwide entertainment company with operations in four business segments Media Networks Parks and Resorts Studio Entertainment and Consumer Products. The Walt Disney Company is the second ..."
Tags: Financial statement, financial analysis, current ratio, quick ratio, debt to equity. ratioanalysis Disney company.
