Delta Air Lines Inc (DAL)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	15,985,000	19,326,000	23,582,000	26,531,000	8,052,000
Total assets	US$ in thousands	73,644,000	72,288,000	72,459,000	71,996,000	64,532,000
Debt-to-assets ratio		0.22	0.27	0.33	0.37	0.12

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $15,985,000K ÷ $73,644,000K
= 0.22

The debt-to-assets ratio for Delta Air Lines, Inc. has exhibited a decreasing trend over the past five years, indicating a positive shift towards lower reliance on debt financing relative to the company's total assets.

In 2019, the ratio stood at 0.17, signifying that only 17% of the company's assets were financed through debt. This low ratio suggests a strong financial position and potentially lower financial risk.

Subsequently, the ratio increased to 0.40 in 2020, indicating that 40% of the assets were financed through debt. This could signal a period of increased borrowing or asset expansion.

However, from 2020 onwards, there is a consistent decline in the debt-to-assets ratio. By 2023, the ratio had decreased to 0.27, reflecting a positive trend in managing debt levels relative to total assets. This reduction may suggest a more conservative approach to financing operations, possibly through increased equity financing or improved operational efficiency.

Overall, the decreasing trend in Delta Air Lines, Inc.'s debt-to-assets ratio indicates a potentially improving financial strength and risk management strategy, as the company appears to be reducing its reliance on debt to fund its operations and investments.