An analysis of the causes of the bankruptcy of Transaero Airlines based on the DuPont Analysis ------ Comparative analysis with Aeroflot and Ural Airlines

Abstract

This paper uses DuPont Analysis to conduct a comparative analysis of the financial data of Transaero Airlines in order to explore the causes of its insolvency. The author first briefly describes the possible causes of its bankruptcy, then use the DuPont Analysis to compare the return on equity, net profit margin, total asset turnover and equity multiplier of three airlines respectively, and finally find that there are many clues to the bankruptcy of Transaero Airlines due to its poor profitability, solvency and operating capacity.