Delta Air Lines Inc (DAL)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.37 | 0.39 | 0.40 | 0.41 | 0.39 | 0.44 | 0.46 | 0.47 | 0.50 | 0.57 | 0.66 | 0.65 | 0.76 | 0.83 | 0.83 | 0.86 | 1.09 | 1.27 | 0.94 | 0.53 |
| Quick ratio | 0.24 | 0.27 | 0.28 | 0.29 | 0.26 | 0.30 | 0.32 | 0.35 | 0.37 | 0.44 | 0.53 | 0.54 | 0.65 | 0.74 | 0.74 | 0.77 | 0.97 | 1.17 | 0.85 | 0.50 |
| Cash ratio | 0.12 | 0.14 | 0.15 | 0.16 | 0.15 | 0.18 | 0.21 | 0.23 | 0.25 | 0.32 | 0.41 | 0.41 | 0.54 | 0.63 | 0.65 | 0.68 | 0.89 | 1.09 | 0.78 | 0.38 |
Delta Air Lines Inc's liquidity ratios have shown fluctuating trends over the past few years.
The current ratio, which indicates the company's ability to cover its short-term liabilities with current assets, was consistently below 1 from March 31, 2020, to December 31, 2024, suggesting potential liquidity concerns. The ratio ranged from a low of 0.37 to a high of 1.27 during this period, with a generally declining trend.
Similarly, the quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also remained below 1 for most of the period. The ratio ranged from 0.24 to 1.17, with a decreasing trend observed over time.
The cash ratio, which focuses solely on the most liquid assets, showed a slightly better picture compared to the current and quick ratios. However, it also demonstrated a downward trend, falling from 0.38 to 0.12 between March 31, 2020, and December 31, 2024.
Overall, Delta Air Lines Inc's liquidity ratios raise concerns about its ability to meet short-term obligations using its current assets and cash reserves. The company may need to closely monitor and manage its liquidity position to ensure financial stability in the face of potential cash flow challenges.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -29.83 | -26.40 | -28.61 | -25.87 | -29.14 | -40.33 | -39.55 | -35.57 | -42.22 | -44.66 | -55.76 | -52.31 | -38.17 | -35.69 | -9.30 | 8.15 | -7.76 | -6.42 | -15.28 | -23.46 |
The cash conversion cycle of Delta Air Lines Inc has displayed fluctuations over the years, with periods of negative days suggesting efficient management of working capital.
From March 31, 2020, to September 30, 2021, the company maintained a negative cash conversion cycle, indicating a quick turnover of cash, which is generally considered favorable. However, from March 31, 2021, until December 31, 2021, the cash conversion cycle turned positive to 8.15 days, indicating a slower conversion of investments into cash.
Subsequently, from March 31, 2022, to December 31, 2024, the company managed to reduce the cash conversion cycle to negative values again, reaching a low of -55.76 days on June 30, 2022. This suggests that Delta Air Lines Inc improved its efficiency in managing its working capital during these periods.
Overall, the company's ability to maintain a negative cash conversion cycle for most of the period indicates effective management of its operating cycle, implying a quicker conversion of investments into cash. However, fluctuations in the cycle highlight the importance of monitoring working capital closely to ensure sustainable financial performance.