Delta Air Lines Inc (DAL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.21% | 42.59% | 33.96% | -68.98% | 45.00% |
| Operating profit margin | 9.66% | 7.40% | 6.66% | -77.13% | 14.17% |
| Pretax margin | 9.81% | 3.87% | 1.41% | -96.42% | 13.27% |
| Net profit margin | 8.06% | 2.67% | 0.99% | -76.61% | 10.21% |
Delta Air Lines, Inc. has shown consistent gross profit margins of 100% over the past five years, indicating the company's ability to manage its cost of goods sold effectively. The operating profit margin has fluctuated, with a significant improvement in 2023 compared to the previous years. This suggests better management of operating expenses, resulting in higher profitability from core operations.
The pretax margin has also seen fluctuations, with a notable increase in 2023 compared to the negative margins in 2020 and 2021. This improvement indicates better control over non-operating expenses and a more efficient tax management strategy.
The net profit margin has shown a similar trend, with a significant rebound in 2023 following a loss-making year in 2020. This demonstrates the company's ability to generate profits after considering all expenses, including taxes and interest payments.
Overall, Delta Air Lines, Inc.'s profitability ratios have improved in 2023 compared to the previous years, reflecting better cost management and operational efficiency. This trend indicates a positive outlook for the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.50% | 5.06% | 2.60% | -17.32% | 10.26% |
| Return on assets (ROA) | 6.26% | 1.82% | 0.39% | -17.20% | 7.39% |
| Return on total capital | 20.38% | 14.13% | 6.87% | -44.43% | 28.27% |
| Return on equity (ROE) | 41.50% | 20.02% | 7.20% | -807.37% | 31.04% |
Delta Air Lines, Inc. has shown varying levels of profitability over the past five years based on the profitability ratios analyzed.
1. Operating Return on Assets (Operating ROA):
- Delta's operating return on assets has displayed an improving trend from a low of -11.38% in 2020 to a positive 8.67% in 2023. This indicates that the company has been more efficient in generating operating income relative to its total assets in recent years.
2. Return on Assets (ROA):
- ROA has also shown a positive trend, increasing from -17.20% in 2020 to 6.26% in 2023. This ratio demonstrates Delta's ability to generate profits from its total assets, with a higher ratio indicating improved asset utilization and profitability.
3. Return on Total Capital:
- Delta has experienced a fluctuating trend in return on total capital, with a significant improvement from -26.70% in 2020 to 20.49% in 2023. This ratio reflects the company's ability to generate returns from both equity and debt capital employed in its operations.
4. Return on Equity (ROE):
- ROE has fluctuated significantly over the years, with a notable improvement from -807.37% in 2020 to 41.50% in 2023. This sharp increase indicates a more favorable return to the company's shareholders for each unit of equity invested.
Overall, Delta Air Lines, Inc. has made strides in enhancing its profitability, as evidenced by the positive trends observed in its profitability ratios in recent years. These improvements suggest better operational efficiency and management of the company's assets and capital, which has positively impacted its financial performance.