Delta Air Lines Inc (DAL)

Debt-to-equity 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-equity ratio		1.44	2.94	6.07	17.30	0.52

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $15,985,000K ÷ $11,105,000K
= 1.44

The debt-to-equity ratio of Delta Air Lines, Inc. has shown a trend of fluctuation over the past five years. In 2019, the ratio was significantly low at 0.73, indicating a conservative capital structure with lower reliance on debt financing compared to equity. However, in the subsequent years, the ratio increased substantially, reaching a peak of 19.01 in 2020. This sharp increase suggests a significant rise in debt levels relative to equity, potentially indicating heightened financial leverage and increased risk.

Subsequently, there was a notable decrease in the ratio in 2021 and 2022, which may indicate efforts by the company to reduce its debt burden and improve its financial stability. However, the ratio remained relatively high at 6.93 and 3.50, respectively, signaling that Delta Air Lines still had a considerable amount of debt compared to its equity base in those years.

In 2023, the debt-to-equity ratio further decreased to 1.81. While this represents a positive trend towards a more balanced capital structure, it is essential to monitor the company's ability to manage its debt levels effectively without compromising its financial health and operational performance. Overall, the fluctuating trend of Delta Air Lines' debt-to-equity ratio highlights the importance of maintaining a prudent approach to capital structure management in the airline industry's volatile and capital-intensive environment.