Delta Air Lines Inc (DAL)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	11,105,000	6,582,000	3,887,000	1,534,000	15,358,000
Debt-to-capital ratio		0.59	0.75	0.86	0.95	0.34

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,985,000K ÷ ($15,985,000K + $11,105,000K)
= 0.59

The debt-to-capital ratio for Delta Air Lines, Inc. has shown a fluctuating trend over the past five years.

In 2019, the ratio was relatively low at 0.42, indicating that the company had a lower level of debt relative to its capital structure. This suggests a more conservative approach to financing, with a larger portion of the company's funding coming from equity.

However, in the following years, the debt-to-capital ratio increased significantly. By 2021, the ratio had reached 0.87, indicating a higher reliance on debt financing compared to equity. This could imply that Delta Air Lines had taken on additional debt to fund its operations or expansion.

In the most recent year, 2023, the debt-to-capital ratio improved to 0.64. While still indicating a significant level of debt in the company's capital structure, this reduction may suggest efforts to deleverage or a shift towards a more balanced mix of debt and equity financing.

It is important to monitor the trend of the debt-to-capital ratio over time to assess the company's financial leverage and risk profile, as well as its ability to meet its debt obligations and sustain its operations in the long term.