3 Question 1 (10 points) Air Transport Services Group, Inc. (ATSG) is a holding company. The Company provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. It offers aircraft, crew, maintenance and insurance (ACMI) for specified cargo operations. You are working for a wealth management company and you have been asked to discuss the following aspects for ATSG: 5 - Aspect 1: Profitability Aspect 2: Short term solvency Aspect 3: Current Asset liquidity Aspect 4: Long term solvency Find below the Balance sheet and the income statement of ATSG. ATSG Balance Sheet Annual Quarterly 2019 31/12 2018 31/12 2017 31/12 Period Ending Total Current Assets Cash and Short Term Investments Cash Cash & Equivalents 266.79 462 259 22 59.32 184.5 327 46.2 59 32 327 Annual 2019 2018 31/12 2017 31/12 Period Ending 31/12 200 79 46.2 1845 327 59.32 46.2 59.32 327 109.11 16287 162 07 37.4 2032 147 75 147.75 33.54 18.61 109.11 22.17 20.52 Total Current Assets Cash and Short Term Investments Cash Cash & Equivalents Short Term investments Total Receivables, Net Accounts Receivables - Trade, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Assets Property PlantEquipment Total - Net PropertyPlantEquipment Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Note Receivable Long Term Other Long Term Assets, Total Other Assets, Total 2820.18 1810.32 2956.52 - 1146.2 395.97 131.68 2470 59 1555 01 2501.49 -946.48 390.75 144.61 1548 84 1159.96 2003.99 -844.03 37.28 73 80.68 63.78 121 215.41 79.12 Ohessa, 3 14 100 1073 70. TO 1471 1757 18 51 15.15 9 1000 20:14 15 13716 13716 1460 60 14006 55161 55161 12 127.48 11324 99.44 John Accounts Payable Paya Accred Expenses Notes Payshort Term Det Current Port of LT Cape Other Cums, Totale Total Long Term Debit Long Term Debt Capital Lease Obligations Deferred income Tax Minority interest Other Liabilities, Total Total Equity Redeemable Pred Stock. Total Preferred Stock Non Redeemable Net Common Stock, Total Additional Paid in Capital Retained Earnings (Accumulated Delicit) Treasury Stock - Common ESOP Debt Guarantee Unread Gain (0) Other Equity Total Total Liabilities & Shareholders' Equity 32017 31784 499 44 46034 436 44 395 28 059 475.72 459 0:50 47116 56.05 0.59 47146 -13.75 -5102 2820.10 91 36 247055 1540 84 Y 16 12 000 DIA 1) F -5 2 2 96 5 3 * 4 6 & 7 8 9 2 W E R Y U S D F G . C G Raur Mehak: Attempt 1 Period Ending 2019 31/12 2018 31/12 2017 31/12 Total Revenue 1452 18 1452.18 39235 892.35 10682 10682 447.96 599 74 852.45 1275.19 345.77 546.57 781,33 206.41 620.24 9688 284.87 187.41 257.53 1789 154.56 178.87 133,05 177 Revenue Other Revenue, Total Cost of Revenue, Total Gross Profit Total Operating Expenses Selling/General/Admin Expenses, Total Research & Development Depreciation / Amortization Interest Expense (Income) - Net Operating Unusual Expense (Income) Other Operating Expenses. Total Operating Income Interest Income (Expense). Net Non-Operating Gain (Loss) on Sale of Assets Other Net Net Income Before Taxes Provision for Income Taxes Net Income After Taxes Minority interest Equity In Affiliates U.S GAAP Adjustment Net Income Before Extraordinary Items Total Extraordinary Items Net Income 50 25 11102 -31.72 99.4 -99.83 -96.02 -9.4 8.18 -6.11 71.57 87.48 -5.54 31.67 19.59 11.59 59.98 67.88 -38.2 59.98 67.88 -382 56.7 14 1.22 612 69.28 18,5 11.59 19.59 31.67 59.98 67.88 -382 Net Income After Taxes Minority Interest Equity In Affiliates US GAAP Adjustment Net Income Before Extraordinary Items Total Extraordinary Items Net Income 59.98 67 88 -382 1.22 56.7 1.4 69.28 61.2 18.5 Calculate the appropriate ratios to discuss each aspects from the 4 above and then provide a trend analysis using the 3-step approach analysis for the last three years. Aspect 1: Profitability using 3-level DuPont system C Paragraph BI U DuPont System Calculation 3 Question 1 (10 points) Air Transport Services Group, Inc. (ATSG) is a holding company. The Company provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. It offers aircraft, crew, maintenance and insurance (ACMI) for specified cargo operations. You are working for a wealth management company and you have been asked to discuss the following aspects for ATSG: 5 - Aspect 1: Profitability Aspect 2: Short term solvency Aspect 3: Current Asset liquidity Aspect 4: Long term solvency Find below the Balance sheet and the income statement of ATSG. ATSG Balance Sheet Annual Quarterly 2019 31/12 2018 31/12 2017 31/12 Period Ending Total Current Assets Cash and Short Term Investments Cash Cash & Equivalents 266.79 462 259 22 59.32 184.5 327 46.2 59 32 327 Annual 2019 2018 31/12 2017 31/12 Period Ending 31/12 200 79 46.2 1845 327 59.32 46.2 59.32 327 109.11 16287 162 07 37.4 2032 147 75 147.75 33.54 18.61 109.11 22.17 20.52 Total Current Assets Cash and Short Term Investments Cash Cash & Equivalents Short Term investments Total Receivables, Net Accounts Receivables - Trade, Net Total Inventory Prepaid Expenses Other Current Assets, Total Total Assets Property PlantEquipment Total - Net PropertyPlantEquipment Total - Gross Accumulated Depreciation, Total Goodwill, Net Intangibles, Net Long Term Investments Note Receivable Long Term Other Long Term Assets, Total Other Assets, Total 2820.18 1810.32 2956.52 - 1146.2 395.97 131.68 2470 59 1555 01 2501.49 -946.48 390.75 144.61 1548 84 1159.96 2003.99 -844.03 37.28 73 80.68 63.78 121 215.41 79.12 Ohessa, 3 14 100 1073 70. TO 1471 1757 18 51 15.15 9 1000 20:14 15 13716 13716 1460 60 14006 55161 55161 12 127.48 11324 99.44 John Accounts Payable Paya Accred Expenses Notes Payshort Term Det Current Port of LT Cape Other Cums, Totale Total Long Term Debit Long Term Debt Capital Lease Obligations Deferred income Tax Minority interest Other Liabilities, Total Total Equity Redeemable Pred Stock. Total Preferred Stock Non Redeemable Net Common Stock, Total Additional Paid in Capital Retained Earnings (Accumulated Delicit) Treasury Stock - Common ESOP Debt Guarantee Unread Gain (0) Other Equity Total Total Liabilities & Shareholders' Equity 32017 31784 499 44 46034 436 44 395 28 059 475.72 459 0:50 47116 56.05 0.59 47146 -13.75 -5102 2820.10 91 36 247055 1540 84 Y 16 12 000 DIA 1) F -5 2 2 96 5 3 * 4 6 & 7 8 9 2 W E R Y U S D F G . C G Raur Mehak: Attempt 1 Period Ending 2019 31/12 2018 31/12 2017 31/12 Total Revenue 1452 18 1452.18 39235 892.35 10682 10682 447.96 599 74 852.45 1275.19 345.77 546.57 781,33 206.41 620.24 9688 284.87 187.41 257.53 1789 154.56 178.87 133,05 177 Revenue Other Revenue, Total Cost of Revenue, Total Gross Profit Total Operating Expenses Selling/General/Admin Expenses, Total Research & Development Depreciation / Amortization Interest Expense (Income) - Net Operating Unusual Expense (Income) Other Operating Expenses. Total Operating Income Interest Income (Expense). Net Non-Operating Gain (Loss) on Sale of Assets Other Net Net Income Before Taxes Provision for Income Taxes Net Income After Taxes Minority interest Equity In Affiliates U.S GAAP Adjustment Net Income Before Extraordinary Items Total Extraordinary Items Net Income 50 25 11102 -31.72 99.4 -99.83 -96.02 -9.4 8.18 -6.11 71.57 87.48 -5.54 31.67 19.59 11.59 59.98 67.88 -38.2 59.98 67.88 -382 56.7 14 1.22 612 69.28 18,5 11.59 19.59 31.67 59.98 67.88 -382 Net Income After Taxes Minority Interest Equity In Affiliates US GAAP Adjustment Net Income Before Extraordinary Items Total Extraordinary Items Net Income 59.98 67 88 -382 1.22 56.7 1.4 69.28 61.2 18.5 Calculate the appropriate ratios to discuss each aspects from the 4 above and then provide a trend analysis using the 3-step approach analysis for the last three years. Aspect 1: Profitability using 3-level DuPont system C Paragraph BI U DuPont System Calculation