Here’s Why Delta Air Lines Should Be On Your Radar

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

E = Equity to Debt Ratio Is Weak

The debt-to-equity ratio for Delta is very high. In most cases, this would be a huge red flag. However, Delta is likely to bring this number down over the next few years. As long as the direction is correct, all is forgiven. In regards to the balance sheet, as stated earlier, Delta would like to decrease long-term debt to $10 billion by the end of 2013. Once again, the direction is the key.

Debt-To-Equity

Cash

Long-Term Debt

DAL

7.42

$3.63 Billion

$12.66 Billion

LCC

6.02

$2.44 Billion

$4.57 Billion

UAL

6.63

$6.76 Billion

$12.12 Billion

 

T = Technicals on the Stock Chart Are Strong

Delta has performed well over the past year.

1 Month

Year-To-Date

1 Year

3 Year

DAL

22.08%

40.79%

26.27%

-1.81%

LCC

10.29%

155.80%

109.90%

180.70%

UAL

19.49%

23.48%

9.70%

1.26%

 

At $11.36, Delta Air Lines is currently trading above all its averages.

50-Day SMA

10.00

100-Day SMA

9.61

200-Day SMA

10.04

 

E = Earnings Have Been Sporadic, But Revenue Has Been Consistent

Delta Air Lines has shown steady annual revenue growth. On the surface, it looks as though earnings have been unpredictable, but keep in mind that 2008 and 2009 were at the height of the financial crisis. Since then, results have been solid.

2007

2008

2009

2010

2011

Revenue ($)in billions

19.15

22.70

28.06

31.76

35.12

Diluted EPS ($)

5.42

-19.08

-1.50

.70

1.01

 

Looking at the last quarter on a YoY basis, we see an increase in revenue and earnings.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

9.82

8.40

8.41

9.73

9.92

Diluted EPS ($)

.65

.51

.15

-.20

1.23

 

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business