Delta Air Lines Inc (DAL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.27 | 0.33 | 0.37 | 0.12 |
| Debt-to-capital ratio | 0.59 | 0.75 | 0.86 | 0.95 | 0.34 |
| Debt-to-equity ratio | 1.44 | 2.94 | 6.07 | 17.30 | 0.52 |
| Financial leverage ratio | 6.63 | 10.98 | 18.64 | 46.93 | 4.20 |
The solvency ratios of Delta Air Lines, Inc. indicate its ability to meet its long-term financial obligations. The trends in the ratios over the past five years show improvements in the company's solvency position.
The debt-to-assets ratio has decreased from 0.40 in 2020 to 0.27 in 2023, indicating that Delta Air Lines has reduced its reliance on debt to finance its assets. This trend suggests a stronger financial position and a lower risk of insolvency.
The debt-to-capital ratio has also shown a decreasing trend, declining from 0.95 in 2020 to 0.64 in 2023. This signifies that the company has been able to lower its debt levels relative to its capital structure, which enhances its financial stability.
The debt-to-equity ratio, which measures the proportion of debt to equity in the company's capital structure, has significantly improved from 19.01 in 2020 to 1.81 in 2023. This reduction indicates a healthier balance between debt and equity financing, reducing financial risk and increasing solvency.
The financial leverage ratio, which indicates the extent to which the company relies on debt financing, has decreased from 46.93 in 2020 to 6.63 in 2023. This substantial improvement suggests that Delta Air Lines has enhanced its ability to meet its financial obligations without over-leveraging itself.
Overall, the decreasing trends in Delta Air Lines' solvency ratios over the years reflect a stronger financial position, improved debt management, and increased solvency, which are positive indicators of the company's long-term sustainability and ability to weather economic challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 131.45 | 81.36 | 34.29 | -389.66 | 228.21 |
Delta Air Lines, Inc.'s interest coverage ratio has exhibited fluctuating trends over the past five years. The interest coverage ratio improved significantly from -8.82 in 2020 to 7.66 in 2023, indicating the company's enhanced ability to meet its interest obligations through operating income. Despite the positive progression, the interest coverage ratio remains below 1 for 2021, indicating that the company's earnings were insufficient to cover its interest expenses during that period. The substantial increase in the interest coverage ratio to 21.99 in 2019 suggests a strong ability to cover interest payments with operating income, showcasing a healthier financial position in that year. Overall, Delta Air Lines, Inc. has shown variability in its interest coverage ratio performance, with improvements in recent years but with challenges in the past, highlighting the importance of monitoring financial stability and operational efficiency moving forward.