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.
Can I Get My Dissertation or Research Paper Delivered Before the Deadline?
Absolutely! We prioritize fast delivery to ensure your dissertation, research paper, or thesis writing is completed well before the deadline. This gives you time for last-minute tweaks—like edits, corrections, or revisions—for dissertation help or essays. Need urgent homework or dissertation assistance? Reach out today and boost your chances of scoring top marks in your grading rubrics with our expert research paper and thesis writing support!
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
If I Buy a Dissertation or Research Paper, Will I Be Reprimanded?Every dissertation, research paper, or thesis we deliver is researched and written from scratch, ensuring original content tailored just for you. You’ll be the only one with access to the final dissertation or research paper, complete with proper references. Your privacy is our top priority. When you order dissertation help or thesis writing from us, your identity and payment details stay confidential, minimizing any risk of detection or content theft by third parties. We help you stay discreet, so you can focus on your goals.
$(3,168) |
$14,087
Why Trust Your Dissertation Help and Thesis Writing Services with My Coursework?Need help with dissertation, thesis writing, or research papers? Our ace my homework platform is the go-to solution for college students across Australia, the UK, the USA, China, and the UAE—plagiarism-free and without AI. Share your requirements via our simple order form, secure your spot with an escrow payment, and we’ll match you with a skilled writer for dissertation help or research paper expertise. Wondering if we’re reliable? We’ve earned a 4.9/5 rating on Sitejabber and Trustpilot, backed by glowing testimonials. Plus, we offer affordable dissertation and thesis writing support—so even on a tight budget, you get maximum quality.
$ (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.