Delta Air Lines Inc (DAL)
Total 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 |
| Total assets | US$ in thousands | 73,644,000 | 72,288,000 | 72,459,000 | 71,996,000 | 64,532,000 |
| Total asset turnover | 0.78 | 0.68 | 0.39 | 0.22 | 0.72 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $57,151,000K ÷ $73,644,000K
= 0.78
Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. It is calculated by dividing revenue by average total assets. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.
Looking at Delta Air Lines, Inc.'s total asset turnover over the past five years, there has been significant variability in the ratio. In 2023, the ratio stands at 0.79, which is an increase from the previous year and reflects that Delta has improved its efficiency in generating revenue from its assets. This could be attributed to effective asset management and operational performance.
In 2022, the total asset turnover was 0.70, showing a slight decline from the previous year but still indicating a reasonable level of efficiency in asset utilization. In 2021, the ratio was 0.41, significantly lower compared to the previous two years. This suggests that Delta faced challenges in generating revenue from its assets efficiently during that period.
In 2020, the total asset turnover was 0.24, indicating a notable decrease in efficiency, possibly due to the impact of the COVID-19 pandemic on the airline industry. However, the ratio rebounded in 2019 to 0.73, showing that Delta was previously able to efficiently utilize its assets to generate revenue.
Overall, Delta Air Lines, Inc.'s total asset turnover has shown fluctuations over the years, with the company experiencing varying levels of efficiency in generating revenue from its assets. It is essential for Delta to continue monitoring and improving its asset turnover to ensure sustainable growth and profitability.
Peer comparison
Dec 31, 2023