Delta Air Lines Inc (DAL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 10,269,000 | 13,011,000 | 15,940,000 | 17,404,000 | 8,249,000 |
| Total current liabilities | US$ in thousands | 26,418,000 | 25,940,000 | 20,966,000 | 15,927,000 | 20,204,000 |
| Current ratio | 0.39 | 0.50 | 0.76 | 1.09 | 0.41 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $10,269,000K ÷ $26,418,000K
= 0.39
The current ratio of Delta Air Lines, Inc. has exhibited a declining trend over the past five years. The ratio decreased from 0.41 in 2019 to 0.39 in 2023. A current ratio below 1 implies that the company may have difficulty meeting its short-term obligations with its current assets alone.
In 2021, the current ratio was at its peak of 0.76, indicating a stronger ability to cover short-term liabilities. However, the ratio dropped to 0.50 by the end of 2022 and further declined to 0.39 by the end of 2023. This downward trend suggests potential liquidity challenges for Delta Air Lines, Inc. as its current assets may not be sufficient to cover its current liabilities.
It is important for investors and stakeholders to monitor Delta Air Lines' liquidity position closely to assess its ability to meet short-term obligations and manage financial risks effectively. The declining current ratio may indicate the need for the company to improve its liquidity management strategies to enhance its financial stability.
Peer comparison
Dec 31, 2023