Delta Air Lines Inc (DAL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,741,000 | 3,266,000 | 7,933,000 | 8,307,000 | 2,882,000 |
| Short-term investments | US$ in thousands | 1,127,000 | 3,268,000 | 3,386,000 | 5,789,000 | 0 |
| Total current liabilities | US$ in thousands | 26,418,000 | 25,940,000 | 20,966,000 | 15,927,000 | 20,204,000 |
| Cash ratio | 0.15 | 0.25 | 0.54 | 0.89 | 0.14 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,741,000K
+ $1,127,000K)
÷ $26,418,000K
= 0.15
The cash ratio of Delta Air Lines, Inc. has fluctuated over the past five years, indicating changes in the company's liquidity position.
In 2023, the cash ratio decreased to 0.22 from 0.32 in 2022, suggesting a decline in the company's ability to cover its short-term liabilities with cash and cash equivalents. This may raise concerns about Delta Air Lines' short-term financial health.
The sharp drop in the cash ratio from 2021 to 2023 is notable, indicating a significant decrease in the company's liquidity position. This downward trend may be attributed to various factors such as increased expenditures, lower cash reserves, or inefficient cash management.
Comparing the current cash ratio to the ratio in 2019, which was also low at 0.21, it is evident that Delta Air Lines may have faced liquidity challenges in recent years. It is essential for the company to closely monitor its cash resources and implement strategies to improve liquidity management going forward.
Overall, the decreasing trend in Delta Air Lines' cash ratio highlights the importance of closely monitoring the company's liquidity position to ensure financial stability and meet short-term obligations effectively.
Peer comparison
Dec 31, 2023