Delta Air Lines Inc (DAL)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	5,521,000	3,661,000	1,886,000	-12,469,000	6,618,000
Total assets	US$ in thousands	73,644,000	72,288,000	72,459,000	71,996,000	64,532,000
Operating ROA		7.50%	5.06%	2.60%	-17.32%	10.26%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $5,521,000K ÷ $73,644,000K
= 7.50%

Based on the data provided, Delta Air Lines, Inc.'s operating return on assets (operating ROA) has shown significant fluctuations over the past five years. The trend indicates a mix of positive and negative performance.

In 2023, Delta's operating ROA stood at 8.67%, representing a substantial improvement from the previous year's 4.87%. This increase suggests that Delta was able to generate more operating income from its assets in 2023 compared to 2022.

In 2022, the operating ROA was positive at 4.87%, showcasing a steady growth from the negative figures in the two preceding years. This indicates a potential turnaround in Delta's operational efficiency and asset utilization.

In 2021, Delta's operating ROA was -4.12%, indicating that the company operated at a loss concerning its assets. The negative figure suggests that Delta faced challenges in generating operating income relative to its asset base.

In 2020, the operating ROA further declined to -11.38%, signifying a major setback for the company in terms of utilizing its assets effectively to generate operating income.

In 2019, Delta's operating ROA was notably high at 10.26%, suggesting strong operational performance and efficient asset utilization during that year.

Overall, Delta Air Lines, Inc.'s operating ROA has demonstrated significant volatility over the past five years, reflecting fluctuations in the company's operational efficiency and profitability. It is essential for Delta's management to monitor and analyze these trends to identify factors driving the changes in operating ROA and implement strategies to enhance asset productivity and profitability in the future.