Delta Air Lines Inc (DAL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	57,151,000	49,453,000	28,301,000	16,166,000	46,706,000
Property, plant and equipment	US$ in thousands	34,148,000	31,622,000	27,153,000	25,527,000	30,248,000
Fixed asset turnover		1.67	1.56	1.04	0.63	1.54

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $57,151,000K ÷ $34,148,000K
= 1.67

Delta Air Lines, Inc.'s fixed asset turnover ratio has shown variability over the past five years. The ratio improved significantly from 2019 to 2020, reaching a high of 1.50. However, in 2021, there was a notable decrease in the fixed asset turnover ratio to 1.04. This indicates that Delta Air Lines was generating $1.04 in revenue for every $1 invested in fixed assets in 2021.

The fixed asset turnover ratio increased in 2022 to 1.53, suggesting an improvement in the efficiency of utilizing its fixed assets to generate revenue. This improvement continued into 2023, with a further increase to 1.64. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

The trend in Delta Air Lines' fixed asset turnover ratio indicates an overall improvement in the company's ability to generate revenue from its fixed assets over the past two years. This can be a positive sign for investors and creditors, as it shows that the company is efficiently utilizing its assets to drive revenue growth.