Top Research Professionals
The research experts and assignment help team consists exclusively of highly qualified graduate writers, each professional with in-depth subject matter expertise and significant experience in custom academic writing.
Boost Your Final Grades By Ordering Custom Writing Help!
For similar papers and sample answers; with a few clicks, Order your research paper, thesis, dissertation writing and other assignment help services
Posted: July 15th, 2022
Compute the value of Altman’s Z-score for Delta Air Lines for each year from 2000-2004.
Compute the value of Altman’s Z-score for Delta Air Lines for each year from 2000-2004.
. Delta Air Lines is one of the largest airlines in the United States. It has operated on the verge of bankruptcy for several years. Exhibit 5.18 presents selected financial data for Delta Air Lines for each of the five years ending December 31, 2000, to December 31, 2004. Delta Air Lines filed for bankruptcy on September 14, 2005. We recommend that you create an Excel spreadsheet to compute the values of the ratios and the Altman’s Z-score in Parts a and b, respectively.
Financial Data for Delta Air Lines
(amounts in millions except per share amounts) (Problem 5.15)
| Financial Data for Delta Air Lines (amounts in millions except per share amounts) (Problem 1) |
|||||
| Year EndedDecember 31: | 2004 | 2003 | 2002 | 2001 | 2000 |
| Sales
Net Income (Loss) before Interest and Taxes |
$15,002
$(3,168) |
$14,087
$ (432) |
$13,866
$(1,337) |
$13,879
$(1,365) |
$15,657
$ 1,829 |
| Interest Expense | $ 824 | $ 757 | $ 665 | $ 499 | $ 380 |
| Net Income (Loss) | $(5,198) | $ (773) | $(1,272) | $(1,216) | $ 828 |
| Current Assets | $ 3,606 | $ 4,550 | $ 3,902 | $ 3,567 | $ 3,205 |
| Total Assets | $21,801 | $25,939 | $24,720 | $23,605 | $21,931 |
| Current Liabilities | $ 5,941 | $ 6,157 | $ 6,455 | $ 6,403 | $ 5,245 |
| Long-Term Debt | $12,507 | $11,040 | $ 9,576 | $ 7,781 | $ 5,797 |
| Total Liabilities
Retained Earnings (Deficit) |
$27,320
$ (4,373) |
$26,323
$ 844 |
$23,563
$ 1,639 |
$19,581
$ 2,930 |
$16,354
$ 4,176 |
| Shareholders’ Equity
Cash Flow Provided by Operations |
$ (5,519)
$(1,123) |
$ (384)
$ 142 |
$ 1,157
$ 225 |
$ 4,024
$ 236 |
$ 5,577
$ 2,898 |
| Outstanding | 139.8 | 123.5 | 123.4 | 123.2 | 123.0 |
| Market Price per Share | $ 7.48 | $ 11.81 | $ 12.10 | $ 29.26 | $ 50.18 |
Common Shares
Required
a. Compute the value of each the following risk ratios.
(1) Current Ratio (at the end of 2000-2004)
(2) Operating Cash Flow to Current Liabilities Ratio (for 2001-2004)
(3) Liabilities to Assets Ratio (at the end of 2000-2004)
(4) Long-Term Debt to Long-Term Capital Ratio (at the end of 2000-2004)
(5) Operating Cash Flow to Total Liabilities Ratio (for 2001-2004)
(6) Interest Coverage Ratio (for 2000-2004)
b. Compute the value of Altman’s Z-score for Delta Air Lines for each year from 2000-2004.
c. Using the analyses in Parts a and b, discuss the most important factors that signaled the likelihood of bankruptcy of Delta Air Lines in 2005.
Study Notes, Research Topics & Assignment Examples: Science Without Conscience Is a Ruin of Nation »Information SystemsWhy Choose our Custom Writing Services
We prioritize delivering top quality work sought by college students.
Discounted Pricing
Our custom writing services maintain the highest quality while remaining affordable for students. Our pricing for research papers, theses, and dissertations is not only fair considering the superior quality but also competitive with other writing services.
0% Similarity Index
We guarantee plagiarism-free, human-written content. Every product is assured to be original and not AI-generated. Our writers, tutors and editors are research experts who ensures the right formating and citation sytles are followed. To note, all the final drafts undergo rigorous plagiarism checks before delivery for submission to ensure authenticity for our valued customers.
How it works
When you decide to place an order with Dissertation Help, here is what happens: