Delta Air Lines Inc (DAL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,995,000 | 5,600,000 | 6,187,000 | 6,411,000 | 5,520,000 | 5,668,000 | 5,140,000 | 4,168,000 | 3,662,000 | 2,455,000 | 3,204,000 | 2,501,000 | 1,886,000 | 765,000 | -7,826,000 | -13,457,000 | -12,469,000 | -10,212,000 | -1,755,000 | 5,188,000 |
| Long-term debt | US$ in thousands | 13,546,000 | 13,881,000 | 14,084,000 | 15,576,000 | 15,985,000 | 16,347,000 | 16,870,000 | 18,490,000 | 19,326,000 | 19,800,000 | 21,444,000 | 22,939,000 | 23,582,000 | 24,077,000 | 25,246,000 | 24,802,000 | 26,531,000 | 28,910,000 | 18,539,000 | 11,750,000 |
| Total stockholders’ equity | US$ in thousands | 15,293,000 | 13,646,000 | 12,386,000 | 11,151,000 | 11,105,000 | 9,226,000 | 8,100,000 | 6,260,000 | 6,582,000 | 4,590,000 | 3,811,000 | 2,991,000 | 3,887,000 | 2,606,000 | 1,281,000 | 482,000 | 1,534,000 | 3,357,000 | 8,690,000 | 14,309,000 |
| Return on total capital | 20.79% | 20.34% | 23.37% | 23.99% | 20.38% | 22.16% | 20.58% | 16.84% | 14.13% | 10.07% | 12.69% | 9.65% | 6.87% | 2.87% | -29.50% | -53.22% | -44.43% | -31.65% | -6.45% | 19.91% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,995,000K ÷ ($13,546,000K + $15,293,000K)
= 20.79%
The return on total capital for Delta Air Lines Inc has shown variability over the periods provided in the data. From March 2020 to December 2020, the return on total capital steadily decreased from 19.91% to -44.43%, indicating a significant decline in capital efficiency. This trend continued into the first half of 2021, reaching a low of -53.22% in March 2021.
However, there was a notable improvement in the return on total capital in the latter half of 2021, with positive returns recorded in September and December 2021 at 2.87% and 6.87% respectively. This positive trend continued into 2022, with further increases in return on total capital through the first two quarters.
By the end of December 2024, Delta Air Lines Inc's return on total capital had stabilized around 20-24%, indicating a recovery in capital efficiency compared to the earlier declining trend. This suggests that the company was able to enhance its utilization of total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024