Delta Air Lines Inc (DAL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.22 | 0.22 | 0.23 | 0.25 | 0.27 | 0.27 | 0.29 | 0.31 | 0.33 | 0.33 | 0.34 | 0.34 | 0.37 | 0.37 | 0.26 | 0.17 | 0.12 | 0.11 | 0.12 |
| Debt-to-capital ratio | 0.58 | 0.59 | 0.64 | 0.68 | 0.75 | 0.75 | 0.81 | 0.85 | 0.88 | 0.86 | 0.90 | 0.95 | 0.98 | 0.95 | 0.90 | 0.68 | 0.45 | 0.34 | 0.32 | 0.34 |
| Debt-to-equity ratio | 1.40 | 1.44 | 1.77 | 2.08 | 2.95 | 2.94 | 4.31 | 5.63 | 7.67 | 6.07 | 9.24 | 19.71 | 51.46 | 17.30 | 8.61 | 2.13 | 0.82 | 0.52 | 0.47 | 0.52 |
| Financial leverage ratio | 6.72 | 6.63 | 7.94 | 9.07 | 11.68 | 10.98 | 15.82 | 19.63 | 24.66 | 18.64 | 27.93 | 58.79 | 151.62 | 46.93 | 23.56 | 8.32 | 4.80 | 4.20 | 4.20 | 4.48 |
The solvency ratios of Delta Air Lines Inc show a consistent trend of decreasing leverage over the years, indicating improved financial health and reduced reliance on debt. The debt-to-assets ratio has shown a general decline, suggesting a lower proportion of assets financed by debt. Similarly, the debt-to-capital and debt-to-equity ratios have decreased over time, indicating a reduced reliance on borrowed capital and improved financial stability.
The financial leverage ratio, which measures the proportion of debt in the company's capital structure, has also shown a decreasing trend, reflecting a stronger equity position relative to debt. This trend signifies Delta Air Lines' ability to meet its financial obligations and indicates a lower financial risk for the company.
Overall, the decreasing solvency ratios suggest that Delta Air Lines Inc has been actively managing its leverage and debt levels, leading to a healthier financial position and enhanced solvency.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates a company's ability to easily cover its interest expenses, while a lower ratio may raise concerns about the company's financial health.
Analyzing Delta Air Lines Inc's interest coverage ratio from March 2019 to March 2024 shows fluctuations in its ability to cover interest expenses. The ratio increased from -16.03 in June 2020 to 15.99 in March 2024, indicating a significant improvement in the company's ability to cover interest payments over this period.
The ratio was volatile between September 2020 and December 2021, with a negative ratio in some quarters, suggesting that the company struggled to cover its interest expenses during this period. The significant improvement in interest coverage ratio from December 2021 to March 2024 reflects a positive trend in Delta Air Lines Inc's ability to service its debt.
Overall, Delta Air Lines Inc's interest coverage ratio has shown considerable fluctuations, but the recent increase in the ratio indicates an improvement in the company's ability to meet its interest obligations. Investors and analysts should continue to monitor this ratio to assess the company's financial health and debt servicing capacity.