Delta Air Lines Inc (DAL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 73,644,000 | 72,288,000 | 72,459,000 | 71,996,000 | 64,532,000 |
| Total stockholders’ equity | US$ in thousands | 11,105,000 | 6,582,000 | 3,887,000 | 1,534,000 | 15,358,000 |
| Financial leverage ratio | 6.63 | 10.98 | 18.64 | 46.93 | 4.20 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $73,644,000K ÷ $11,105,000K
= 6.63
Delta Air Lines, Inc.'s financial leverage ratio has fluctuated significantly over the past five years. The ratio decreased from 46.93 in 2020 to 4.20 in 2019, representing a substantial decline in leverage. However, in subsequent years, the ratio increased sharply to 18.64 in 2021, further rising to 10.98 in 2022, and eventually reaching 6.63 in 2023.
The trend indicates that the company has been actively managing its leverage levels. A lower financial leverage ratio suggests that Delta Air Lines is relying less on debt to finance its operations and investments, which could be indicative of a more conservative financial strategy. However, it is essential to monitor this ratio closely to ensure that the company's capital structure remains optimal and sustainable in the long term.
Peer comparison
Dec 31, 2023