Question

what is Delta Air current financial position?

Answer 1

Year 2019
Ratio Analysis
Liquidity Position
Current ratio = total of current assets/total of current liabilities	8249000/20204000	0.41
quick ratio = total of quick assets/total of current liabilities	6998000/20204000	0.35
total of quick assets = total of current assets-inventory-prepaid expenses	8249000-1251000	6998000
From the analysis of the liquidity ratio of company for year 2019 it is very much clear that both current and quick ratio are very low and ratio is very low from ideal ratio. Liquidity position of the company is very poor and company may face problem in meeting out its day to day operating expenses.
Profitability position
Operating profit ratio	operating profit/sales	6618000/47007000	14.08%
Net profit ratio	net profit/sales	4767000/47007000	10.14%
return on assets	net income/total of assets	4767000/64532000	7.39%
return on equity	net income/shareholders equity	4767000/15358000	31.04%
From the analysis of profitability of the company, company operating profit, net profit of the company is positive and return on total assets and on shareholders equity is quite good thus we can say that profitability position of the company is good.
Solvency ratio
Debt ratio	total of liabilities/total of assets	49174000/64532000	0.76201
Debt to equity ratio	total of liabilities/total of shareholders equity	49174000/15358000	3.201849
From the solvency point of view company is highly risky because high level of debt used in the company. Debt ratio is .76 and debt to equity ratio is 3.20 which show high level of indebtness of the company. Thus we can say that company is highly risky in its capital structure.
Efficiency ratio
Accounts receivable turnover ratio	sales/accounts receivables	47007000/2854000	16.47057
total Asset turnover ratio	sales/total of assets	47007000/64532000	0.728429
Inventory turnover ratio	cost of goods sold/inventory	36625000/1251000	29.27658
From the analysis of the efficiency ratios it is evident that company is utilizing its assets in a more efficient manner
Thus overall we can say that financial position of the company is good in case of efficiency and profitability parameters but company financial position in term of liquidity and solvency position is not very good as company is highly levered.