Delta Air Lines Inc (DAL)
Interest coverage
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,411,000 | 5,520,000 | 5,668,000 | 5,140,000 | 4,168,000 | 3,662,000 | 2,455,000 | 3,204,000 | 2,501,000 | 1,886,000 | 765,000 | -7,826,000 | -13,457,000 | -12,469,000 | -10,212,000 | -1,755,000 | 5,188,000 | 6,618,000 | 6,309,000 | 5,883,000 |
| Interest expense (ttm) | US$ in thousands | 401,000 | 833,000 | 864,000 | 916,000 | 982,000 | 1,029,000 | 1,056,000 | 1,122,000 | 1,191,000 | 1,278,000 | 1,378,000 | 1,355,000 | 1,211,000 | 929,000 | 637,000 | 416,000 | 297,000 | 301,000 | 295,000 | 309,000 |
| Interest coverage | 15.99 | 6.63 | 6.56 | 5.61 | 4.24 | 3.56 | 2.32 | 2.86 | 2.10 | 1.48 | 0.56 | -5.78 | -11.11 | -13.42 | -16.03 | -4.22 | 17.47 | 21.99 | 21.39 | 19.04 |
March 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,411,000K ÷ $401,000K
= 15.99
The interest coverage ratio for Delta Air Lines Inc has shown fluctuations over the past few quarters. It indicates the company's ability to meet its interest payments on outstanding debt.
The trend reveals an improving interest coverage ratio from the negative territory in the first quarter of 2021 to a positive value in March 2024. This signifies that Delta Air Lines' earnings are covering interest payments more comfortably over time.
The increase in the interest coverage ratio indicates improved financial health and reduced financial risk for the company. A ratio above 1 indicates that Delta Air Lines is generating sufficient earnings to cover its interest expenses.
However, it is important to note that while the company's interest coverage has improved significantly in recent periods, further monitoring of the ratio is necessary to ensure sustained financial stability.
Peer comparison
Mar 31, 2024