Determine which of the ratios provide the most key insights into Delta's airline current level of performance. How can you assess whether the results of your calculations are positive or negative? Explain which of the ratios give you reason to be concerned with the organization's current strategy and why.

Ratio Formula What It Shows 1. Return on total assets Profits after taxes Total assets The net return on total investments of the firm or or Profits after taxes + Interest Total assets The return on both creditors' and shareholders' investments 2. Return on stockholders' equity (or return on net worth) Profits after taxes Total stockholders' equity How profitably the company is utilizing shareholders' funds 3. Return on common equity Profits after taxes Preferred stock dividends Total stockholders' equity - Par value of preferred stock The net return to common stockholders 4. Operating profit margin (or return on sales) Profits before taxes and before interest Sales The firm's profitability from regular operations an 5. Net profit margin (or net return on sales) Profits after taxes Sales The firm's net profit as a percentage of total sales Ratio Formula What It Shows 1. Return on total assets Profits after taxes Total assets The net return on total investments of the firm or or Profits after taxes + Interest Total assets The return on both creditors' and shareholders' investments 2. Return on stockholders' equity (or return on net worth) Profits after taxes Total stockholders' equity How profitably the company is utilizing shareholders' funds 3. Return on common equity Profits after taxes Preferred stock dividends Total stockholders' equity - Par value of preferred stock The net return to common stockholders 4. Operating profit margin (or return on sales) Profits before taxes and before interest Sales The firm's profitability from regular operations an 5. Net profit margin (or net return on sales) Profits after taxes Sales The firm's net profit as a percentage of total sales