Nike 2018 report
The company has various international joint ventures that are transatlantic and has ventures with Alitalia, Virgin Atlantic, and Air France. Other foreign airlines that transact with Nikeare the China Eastern, Aeromexico, and Gol. They have membership in a global airline called Sky Team. Past Performance The company served over 180 million clients each year and was named as the top fifty fortune’s top in the year 2016. The airline was also named as the most admired airline in the sixth year period and ranked at position one in the survey conducted by Business News Annual Airline. The company owns Monroe as its part in mitigating the refining cost as reflected in its jet fuel. The company uses this measure to maintain all the New York operations.
Flyer Program The flyer program is adopted by the company and is designed to increase the loyalty of travelers and enhance their number. The program, therefore, serves as an incentive to the airline. The program enables the customers to earn credit based on mileage covered on the Nike company. 85% - Cost of Revenue -25. 55% - Gross Profit 35. 49% - Total Operating Expenses 4. 27% - Total Other Income/Expenses Net -66. 76% - Net Income 586. 80 in the year 2015 meaning that the firm is operating at high-profit margins. The company can apply the trend analysis on the income statement to help the management project on sales, revenue, and other items of concerned. DELTA AIR LINES Profit and Loss Period Ending 31-Dec-15 31-Dec-14 31-Dec-13 Total Revenue 40,704,000 40,362,000 37,773,000 Cost of Revenue 17,096,000 22,967,000 20,964,000 Gross Profit 23,608,000 17,395,000 16,809,000 Operating Expenses Selling General and Administrative 13,936,000 12,702,000 11,349,000 Non Recurring 35,000 716,000 402,000 Others 1,835,000 1,771,000 1,658,000 Total Operating Expenses 15,806,000 15,189,000 13,409,000 Operating Income or Loss 7,802,000 2,206,000 3,400,000 Income from Continuing Operations Total Other Income/Expenses Net -164,000 -484,000 -21,000 Earnings Before Interest And Taxes 7,638,000 1,722,000 3,379,000 Interest Expense 481,000 650,000 852,000 Income Before Tax 7,157,000 1,072,000 2,527,000 Income Tax Expense 2,631,000 413,000 -8,013,000 Minority Interest - - - Net Income From Continuing Ops 4,526,000 659,000 10,540,000 Net Income 4,526,000 659,000 10,540,000 Preferred Stock And Other Adjustments - - - Net Income Applicable To Common Shares 4,526,000 659,000 10,540,000 Fig.
2 Income statement for Delta Airline Balance sheet The company’s base year for the balance sheet analysis uses the base year as 2013 for the financial items of 2014. On the other hand, the base year for the year 2015 is 2014. The overall asset variance is $871,000 in the year 2015 and $1,753,000 in the year 2014. The company has, therefore, a positive variance over its assets meaning that it can make them useful in revenue generation. Financial Ratios Current ratio The quick ratio is used to calculate the company’s short-term liability over its obligations. The ratio is also called the current ratio and is used to measure the company’s ability to pay its short-term obligations hence include the current assets and current liabilities. Table 1 Current Ratios 2015 2014 2013 Current Ratio 0.
52) but this does not mean that the company ran at a bankrupt state. Debt Ratio This ratio is used to measure the company’s leverage as the proportion of the company assets over its debts. Table2. Debt ratio 2015 2014 2013 Debt Ratio 0. 78 The Delta’s debt ratio increases from 78% from the year 2013, 84% in 2014, and finally 80 percent in the year 2015. A low inventory ratio implies that the company has a weak sales program and has excess inventory. A high inventory turnover ratio on the other side indicates that a company employs a good sales program hence no wastages on the underlying inventory. Table. 3 Turnover Ratio 2015 2014 2013 Inventory Turnover 58. 53 Their inventory turned 36 times in 2013, 47. 40 times per year. This increase in value in the ratio indicates that the company had improved on its operations to a practical level.
Times Interest Charges Earned This ratio is also referred to as coverage ratio and is used in measuring the firm’s ability to oblige with its debts. The interests are obtained from the income statements that the firm is obliged to pay. Most companies consider the preferences in generating their cash flows to making the interest on the principal. The company is, therefore, less to default in its debt hence service to debt is not a problem to the company. Asset Turnover Total assets turnover is the efficiency ratio that is used by the firms to measure the revenue from the sales of the assets. The ratio is used by companies in measuring their efficiencies regarding asset usage. The asset turnover is an indicator that is used by the companies on their efficiency in their asset deployment which yields revenue.
Table. This tactic somehow makes a company change its asset turnover change artificially which may or may not be the case in Nike company. Additionally, Nikeseems to be a capital intense industry hence the low asset turnover. This is because the industry has an intense number of assets. Earnings per Share (EPS) EPS is the portion to which a company allocates the shares that are outstanding from a common stock. Earnings per share indicate the firm’s profitability and are used to know the returns to which shareholders are expected to receive depending on the number of shares they own. Fig. 9 Earning per Share The Nike company reported low EPS in the year 2014 but increase in 2015 likely because of the improved performance.
Price to Earnings Ratio P/E ratio is the ratio to which companies uses to value the firm of its current share to the per share earnings. The historical P/E ratio has been around 15, but it fluctuates the depending on the economic factors that are felt in a particular year. Table. There was a more willingness of investors to invest on 2014 as regards to $19. 10 for every dollar earned and 2. 36 in the year 2015 Dividend Yield Dividend to price ratio shows the firm’s total payment of dividends through the market capitalization with consideration of the number of shares. The ratio helps to measure the amount of cash that is available for the distribution to the company’s shareholders. The shareholders, in this case, are with regards to the shares they hold at a market value price.
The low payment of dividends was as a result of the relative prices of stock. The increasing dividend yield towards the year 2015 was 45% meaning that there was low compensation to the investors. Current Stock Prices and Historical Trends Fig. 11(a) Six month Stock price movement The six-month trend of the stock price is fluctuating from a 38. 23 on 8 May to $46. 38 in 15th November 2016. The share prices have been trending over the period and are shooting higher over the five-year period. The good performance of DAL is attributed to the improved operations of the firm over the period and the improvement of technology in its operations. Another attributing factor is the rise of high standard fleets that has helped it edge against competition from private firms and the various programs to curb on fuel crisis.
Current Events Premium seats The Delta has relished seats that are offer comfort known as premium economy and economy comfort. The family can benefit much from such package as they can share the login details hence overall cheap cost. Credit cards The moment people think of the need that the need to be famous by traveling all they need is the credit card. Delta offers an immense opportunity trough cards. There is no need to go for first class flights inexpensive booking. The booking card offered by Nike company is a hot cake that offers the best chance of using high standard flight services in the world. The Thomson seating has given rise to a platform that has enabled the airline to have a great width for more space.
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