Delta Air Lines Inc (DAL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,609,000 | 1,318,000 | 280,000 | -12,385,000 | 4,767,000 |
| Total stockholders’ equity | US$ in thousands | 11,105,000 | 6,582,000 | 3,887,000 | 1,534,000 | 15,358,000 |
| ROE | 41.50% | 20.02% | 7.20% | -807.37% | 31.04% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,609,000K ÷ $11,105,000K
= 41.50%
Delta Air Lines, Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE improved significantly to 41.50%, more than doubling compared to the 2022 level of 20.02%. This indicates that the company generated $41.50 in profit for every dollar of shareholder equity in 2023, reflecting a strong performance.
The ROE in 2021 was 7.20%, indicating a moderate return on equity for that year. However, in 2020, the company reported a negative ROE of -807.37%, which reflects a concerning situation where the company incurred a significant loss in that year relative to its shareholder equity.
In 2019, Delta Air Lines, Inc. had an ROE of 31.04%, showing a solid performance and profitability that year. Overall, the company's ROE has been volatile, with significant ups and downs, which may suggest fluctuations in profitability and efficiency in utilizing shareholder equity over the years. Further analysis of the company's financial performance and operational strategies would be necessary to understand the drivers behind these fluctuations and assess the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023