Delta Air Lines Inc (DAL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,995,000 | 5,521,000 | 3,661,000 | 1,886,000 | -12,469,000 |
| Long-term debt | US$ in thousands | 13,546,000 | 15,985,000 | 19,326,000 | 23,582,000 | 26,531,000 |
| Total stockholders’ equity | US$ in thousands | 15,293,000 | 11,105,000 | 6,582,000 | 3,887,000 | 1,534,000 |
| Return on total capital | 20.79% | 20.38% | 14.13% | 6.87% | -44.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,995,000K ÷ ($13,546,000K + $15,293,000K)
= 20.79%
Delta Air Lines Inc's return on total capital has shown significant improvement over the years. Starting at a negative percentage of -44.43% in December 31, 2020, the company managed to turn it around to a positive 6.87% in December 31, 2021. Subsequently, the return on total capital continued to increase, reaching 14.13% in December 31, 2022, 20.38% in December 31, 2023, and 20.79% in December 31, 2024. This upward trend indicates that Delta Air Lines has been effectively utilizing its capital to generate returns for its stakeholders, demonstrating improved financial performance and efficiency in its operations.
Peer comparison
Dec 31, 2024