Delta Air Lines Inc (DAL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.18 | 0.22 | 0.27 | 0.33 | 0.37 |
| Debt-to-capital ratio | 0.47 | 0.59 | 0.75 | 0.86 | 0.95 |
| Debt-to-equity ratio | 0.89 | 1.44 | 2.94 | 6.07 | 17.30 |
| Financial leverage ratio | 4.93 | 6.63 | 10.98 | 18.64 | 46.93 |
Delta Air Lines Inc has shown a consistent improvement in its solvency ratios over the years, indicating a strengthening financial position. The Debt-to-assets ratio has decreased from 0.37 in 2020 to 0.18 in 2024, showing that the company is relying less on debt to finance its assets. Similarly, the Debt-to-capital ratio has declined from 0.95 in 2020 to 0.47 in 2024, demonstrating a reduction in the proportion of debt in the company's capital structure.
Moreover, the Debt-to-equity ratio has substantially decreased from 17.30 in 2020 to 0.89 in 2024, signifying that Delta Air Lines Inc is being financed more by equity compared to debt. This trend indicates a significant improvement in the company's ability to cover its financial obligations with shareholder equity.
Additionally, the Financial leverage ratio has decreased from 46.93 in 2020 to 4.93 in 2024, indicating a significant reduction in the company's reliance on debt to finance its operations. This implies a lower risk of financial distress and a healthier balance sheet.
Overall, the declining trend in all solvency ratios suggests that Delta Air Lines Inc has made strides in reducing its debt levels and strengthening its financial position, which bodes well for its long-term sustainability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | 131.45 | 81.36 | 34.29 | -389.66 |
Delta Air Lines Inc's interest coverage has shown significant improvement over the years. In December 2020, the interest coverage ratio was negative at -389.66, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses.
However, by December 2021, the interest coverage ratio improved significantly to 34.29, suggesting that Delta's ability to cover its interest payments had strengthened. This trend continued in the following years, with the interest coverage ratios reaching 81.36 in December 2022 and 131.45 in December 2023.
The absence of a figure for December 2024 may imply that the data is not available or the interest coverage ratio has exceeded the display limit. Overall, the improving trend in Delta Air Lines Inc's interest coverage ratios indicates a healthier financial position and a reduced risk of default due to interest payment obligations.