Delta Airlines Swot Analysis Paper
Delta Airlines Property, Plant, and Equipment Delta Company was formed in 1924 but later changed its name in 1928 to Delta Airlines. Initially, the company started operating as a pesticide spraying firm, but when it gained more clients, it changed its course of operation to include other services. The firm moved their headquarters to Atlanta in 1941. The firm is the third largest airline company in U.S with several airline companies. The firm is the only American-owned airline company that offers its flight services to Africa. The company offer services to other parts of the world such as Caribbean, Europe, Australia, South America, Middle East, Asia and parts of North America. The firm also offers both international and domestic services
…show more content…
The increase in property, plant, and equipment for the company led to an increase in the extent in which it offers its services.
From the above calculation, it is evident that Delta Airlines got 0.78 from the assets per dollar. The value of 0.78 is vital as it places the company in a better place.
The calculation reveals that when comparing the debt of the firm to the total assets is equal to 0.78. The degree of leverage of the firm is …show more content…
The ratio helps in boosting the effectiveness of the company to generate income at 21.78%. The common method used is the straight-line approach. In this approach, the depreciation is calculated annually. The method is indicated in the formula below, and it is very simple and easy to use. In the case scenario of Delta Airlines, the company depreciates the fixed assets with a straight-line approach. The approach is used to give an estimation of the residual value over the estimated useful life as documents in the property, plant, and equipment of the firm. In the case, some costs are amortized and capitalized over the residual useful life.
The three method of appreciation include: Declining balance method: the method charges a higher rate in early years of the useful asset life. The approach is used for assets that have a useful life of over three years. The depreciation lowers with time. The assets experience higher depreciation in early years of the firm, but it depreciates less in the later period. According to Stittle (2008), the asset has a higher depreciation at the earlier years because of its higher productivity which declines after some
The increase in property, plant, and equipment for the company led to an increase in the extent in which it offers its services.
From the above calculation, it is evident that Delta Airlines got 0.78 from the assets per dollar. The value of 0.78 is vital as it places the company in a better place.
The calculation reveals that when comparing the debt of the firm to the total assets is equal to 0.78. The degree of leverage of the firm is …show more content…
The ratio helps in boosting the effectiveness of the company to generate income at 21.78%. The common method used is the straight-line approach. In this approach, the depreciation is calculated annually. The method is indicated in the formula below, and it is very simple and easy to use. In the case scenario of Delta Airlines, the company depreciates the fixed assets with a straight-line approach. The approach is used to give an estimation of the residual value over the estimated useful life as documents in the property, plant, and equipment of the firm. In the case, some costs are amortized and capitalized over the residual useful life.
The three method of appreciation include: Declining balance method: the method charges a higher rate in early years of the useful asset life. The approach is used for assets that have a useful life of over three years. The depreciation lowers with time. The assets experience higher depreciation in early years of the firm, but it depreciates less in the later period. According to Stittle (2008), the asset has a higher depreciation at the earlier years because of its higher productivity which declines after some