Delta Air Lines Inc. (NYSE:DAL)

Goodwill

The goodwill value remains relatively stable over the period from 2017 to 2021, with a slight decrease from 9,794 million USD in 2017 to 9,753 million USD in 2021.

International Routes and Slots

This asset category shows no change across the five years, consistently valued at 2,583 million USD.

Airline Alliances

A notable upward trend is observed in airline alliances, increasing from 661 million USD in 2017 and 2018 to 1,005 million USD in 2019, then sharply rising to 1,863 million USD by 2020 and maintaining that value in 2021. This indicates a significant expansion or acquisition related to airline alliances during this period.

Delta Tradename

The tradename asset remains constant at 850 million USD throughout the five-year span, suggesting no revaluation or impairment occurred.

Domestic Slots

No change is seen in domestic slots, held steady at 622 million USD each year.

Indefinite-lived Intangible Assets

An increasing trend is visible in indefinite-lived intangible assets, rising from 4,716 million USD in 2017 and 2018 to 5,060 million USD in 2019 and further to 5,918 million USD in 2020, where it stabilizes in 2021. This increase aligns with the surge in airline alliances.

Marketing Agreements and Maintenance Contracts

Both marketing agreements and maintenance contracts show no variation over time, consistently valued at 730 million USD and 193 million USD respectively.

Other Intangible Assets

The category labeled “Other” remains unchanged at 53 million USD throughout the reviewed periods.

Definite-lived Intangible Assets, Gross Carrying Value

The gross carrying value of definite-lived intangible assets remains steady at 976 million USD each year.

Accumulated Amortization

Accumulated amortization shows a gradual increase in its absolute value (more negative), moving from -845 million USD in 2017 to -893 million USD in 2021, indicating ongoing amortization expenses for definite-lived intangible assets.

Definite-lived Intangible Assets, Net of Accumulated Amortization

The net value of definite-lived intangible assets exhibits a steady decline from 131 million USD in 2017 to 83 million USD in 2021. This decrease correlates with the progressive amortization observed in accumulated amortization.

Intangible Assets, Net of Accumulated Amortization

Net intangible assets increase over the period, rising from 4,847 million USD in 2017 to a peak of 6,011 million USD in 2020 before slightly decreasing to 6,001 million USD in 2021. The upward trend aligns with growth in indefinite-lived intangible assets, especially airline alliances.

Goodwill and Intangible Assets Combined

The combined total of goodwill and intangible assets shows a general upward trend, increasing from 14,641 million USD in 2017 to a peak of 15,764 million USD in 2020, followed by a minor reduction to 15,754 million USD in 2021. This increase is primarily driven by the rise in intangible assets, particularly airline alliances and indefinite-lived assets, while goodwill remains stable.

The analysis of the reported and goodwill adjusted financial data over the five-year period reveals distinct trends in key financial metrics.

Total Assets

The reported total assets show a consistent upward trend from 53,292 million US$ in 2017 to 72,459 million US$ in 2021, indicating growth in the asset base over the years. The adjusted total assets, which exclude goodwill, also increase steadily, from 43,498 million US$ in 2017 to 62,706 million US$ in 2021. This parallel growth suggests that the company's asset expansion is not primarily driven by goodwill adjustments but by tangible or other non-goodwill assets.

Stockholders' Equity

The reported stockholders’ equity remains relatively stable between 2017 and 2019, fluctuating slightly but staying within the range of approximately 13,600 million to 15,300 million US$. However, there is a notable decline in 2020 to 1,534 million US$, followed by a partial recovery to 3,887 million US$ in 2021. This dip in 2020 significantly affects the equity value and reflects adverse financial conditions or charges during that year.

The adjusted stockholders’ equity shows a much more dramatic trend. Starting considerably lower than the reported figure in 2017 at 4,116 million US$, it slightly decreases in 2018 then rises in 2019 to 5,577 million US$. Despite this growth, there is a substantial and negative shift in 2020, with equity falling to -8,219 million US$, followed by a less negative but still negative figure of -5,866 million US$ in 2021. This sharp decline into negative equity territory after adjustment indicates significant goodwill impairment or other factors negatively impacting adjusted shareholder value in those years.

Overall, the asset base expansion is consistent and healthy when viewed through both reported and adjusted lenses. However, the equity figures indicate financial distress starting in 2020, especially after goodwill adjustments, suggesting that the company's underlying net asset value was severely impacted during this period. The partial recovery in reported equity in 2021 is positive but remains substantially below prior years, and the adjusted equity remains negative, highlighting ongoing challenges in fully restoring shareholder value after removing goodwill effects.

The financial data reveals significant fluctuations across the analyzed periods, particularly between the years 2017 and 2021. Overall, the company's performance indicators display varying trends influenced notably by the impact observed in 2020.

Total Asset Turnover

The reported total asset turnover shows a gradual decline from 0.77 in 2017 to 0.73 in 2019, followed by a sharp drop to 0.24 in 2020, with a partial recovery to 0.41 in 2021. The adjusted total asset turnover mirrors this pattern but exhibits higher values in all periods, starting at 0.95 in 2017, decreasing slightly to 0.86 in 2019, plunging to 0.27 in 2020, and then improving to 0.48 in 2021. This indicates a substantial reduction in asset utilization efficiency during 2020, with some rebound afterward, and suggests that excluding goodwill provides a more optimistic view of asset turnover.

Financial Leverage

Reported financial leverage ratios remain relatively stable from 2017 (3.83) through 2019 (4.2) before soaring dramatically to 46.93 in 2020, then reducing to 18.64 in 2021. Adjusted financial leverage follows a comparable but slightly higher trend until 2019 with values of 10.57, 12.92, and 9.82, respectively; data for 2020 and 2021 are unavailable. The extreme increase in reported leverage during 2020 suggests a significant rise in debt or reduction in equity, indicating heightened financial risk at that time, partially alleviated in 2021.

Return on Equity (ROE)

Reported ROE values ascend steadily from 25.72% in 2017 to 31.04% in 2019, then experience an extraordinary decline to -807.37% in 2020, recovering to 7.2% in 2021. Adjusted ROE follows an upward trend from 86.9% in 2017, peaking at 100.74% in 2018, then declining to 85.48% in 2019; subsequent values are missing. The pronounced negative reported ROE in 2020 indicates severe profitability challenges or losses affecting shareholders' equity, with some recovery the following year, whereas adjusted ROE figures suggest consistently high profitability excluding goodwill effects until 2019.

Return on Assets (ROA)

Reported ROA is fairly stable between 6.71% and 7.39% from 2017 to 2019 but falls sharply to -17.2% in 2020 before a slight improvement to 0.39% in 2021. Adjusted ROA follows a similar pattern: an increase from 8.22% in 2017 to 8.71% in 2019, then a decline to -19.9% in 2020 and a marginal rise to 0.45% in 2021. This reflects significant asset profitability deterioration during 2020, with only minimal recovery thereafter, consistent with the adverse impact observed across other metrics.

In summary, the data exhibits a clear deterioration of the company’s operational efficiency, financial structure, and profitability in 2020, likely due to extraordinary or external factors affecting the business environment during that year. The partial recovery in 2021 across most indicators suggests improving conditions, though many measures remain below pre-2020 levels. Adjusted metrics generally portray stronger performance than reported figures, highlighting the influence of goodwill adjustments on financial analysis.

The financial data reveals notable trends in total assets and asset turnover ratios over the five-year period examined. In terms of asset size, both reported and goodwill-adjusted total assets exhibit a consistent upward trajectory. Reported total assets increased from $53,292 million in 2017 to $72,459 million in 2021, showing growth of approximately 36%. Similarly, adjusted total assets — which exclude goodwill — rose from $43,498 million to $62,706 million during the same timeframe, reflecting a comparable growth pattern but at a slightly lower base.

Turning to asset turnover ratios, a declining trend is evident for both reported and adjusted figures from 2017 through 2019, followed by a sharp contraction in 2020, and a partial recovery in 2021. Specifically, the reported total asset turnover decreased from 0.77 in 2017 to 0.73 in 2019, then dropped steeply to 0.24 in 2020 before recovering to 0.41 in 2021. The adjusted total asset turnover follows a similar pattern, beginning at 0.95 in 2017, gradually declining to 0.86 in 2019, plunging to 0.27 in 2020, and then improving to 0.48 in 2021.

This data likely reflects operational challenges impacting asset utilization efficiency, especially during 2020, when turnover ratios reached their lowest points. Despite increases in asset base, the company’s ability to generate revenue from these assets was significantly impaired during this period. The partial rebound in turnover ratios in 2021 suggests a recovery phase, though values remain below pre-2020 levels. The higher turnover ratios on an adjusted basis indicate that excluding goodwill provides a clearer picture of operational efficiency.

The analysis of the annual financial data reveals several notable trends and changes over the five-year period ending in 2021.

Total Assets (Reported and Adjusted)

Reported total assets show a steady increase year over year, rising from 53,292 million US dollars in 2017 to 72,459 million US dollars in 2021. This reflects a consistent expansion in asset base throughout the period. Adjusted total assets, which likely exclude goodwill, also increase steadily but at a slightly lower level, from 43,498 million US dollars in 2017 to 62,706 million US dollars in 2021. The growth in adjusted total assets mirrors the reported assets trend, indicating overall asset growth beyond intangible goodwill components.

Stockholders' Equity (Reported and Adjusted)

Reported stockholders’ equity remains relatively stable between 13,687 million and 15,358 million US dollars from 2017 through 2019. However, it experiences a sharp decline to 1,534 million US dollars in 2020, followed by a partial recovery to 3,887 million US dollars in 2021. This substantial drop in 2020 likely reflects the impact of extraordinary events during that period. Adjusted stockholders’ equity, which again excludes goodwill, presents a more volatile pattern. It decreases from 4,116 million US dollars in 2017 to 3,906 million in 2018, then rises to 5,577 million in 2019, notably lower than the reported equity. A significant deterioration occurs in 2020 and 2021, with negative equity values of -8,219 million and -5,866 million US dollars, respectively, suggesting substantial impairments or losses affecting the company's tangible equity base.

Financial Leverage (Reported and Adjusted)

Reported financial leverage shows moderate variability from 3.83 in 2017, peaking at 4.4 in 2018, then slightly decreasing to 4.2 in 2019. A dramatic increase occurs in 2020 to 46.93, indicating a sharp rise in the company’s debt relative to equity, likely due to the collapse in equity values observed earlier. In 2021, leverage declines to 18.64, which, while reduced, remains significantly elevated compared to pre-2020 levels. Adjusted financial leverage starts at 10.57 in 2017, rises to a high of 12.92 in 2018, and then falls to 9.82 in 2019. Data for subsequent years is not provided, limiting further analysis. The higher adjusted leverage ratios compared to reported figures reflect the impact of excluding goodwill, which reduces the equity base, thereby increasing leverage ratios.

Overall, the data suggest that the company experienced substantial financial stress beginning in 2020, evidenced by plunging stockholders' equity and sharply increased financial leverage. The asset base continued to grow, but equity deterioration, especially in adjusted terms, points to underlying impairments or losses in tangible assets. Leverage ratios further indicate elevated financial risk during the most recent years. Recovery signs are present in 2021 but at levels that remain markedly weaker than those of earlier years.

The financial data reveals significant fluctuations in both reported and adjusted figures for stockholders' equity and return on equity (ROE) over the five-year period ending in 2021.

Reported Stockholders’ Equity

The reported stockholders’ equity remained relatively stable around US$13.7 billion to US$15.4 billion between 2017 and 2019. However, there was a dramatic decrease to approximately US$1.5 billion in 2020, followed by a partial recovery to nearly US$3.9 billion in 2021. This suggests a sharp deterioration in equity, likely linked to extraordinary events impacting the company during 2020, with some recovery occurring subsequently.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity, which likely excludes goodwill or similar intangible assets, demonstrates a downward trend starting from US$4.1 billion in 2017 to US$3.9 billion in 2018, then increasing to US$5.6 billion in 2019. The figure plummeted into negative territory in 2020 (-US$8.2 billion) and remained negative in 2021 (-US$5.9 billion). This marked negative adjustment signals significant write-downs or impairments affecting tangible equity, corresponding with the severe impact observed in 2020.

Reported Return on Equity (ROE)

Reported ROE exhibited an upward trajectory from 25.7% in 2017 to a peak of 31.0% in 2019, indicative of improving profitability in relation to reported equity. In 2020, the figure plunged drastically to -807.4%, reflecting heavy losses relative to equity likely driven by extraordinary circumstances. In 2021, the ROE partially recovered to 7.2%, signaling a shift back toward profitability, though at a significantly reduced level compared to prior years.

Adjusted Return on Equity (ROE)

Adjusted ROE was substantially higher than reported ROE in the years where data is available, with values reaching 86.9% in 2017, peaking at 100.7% in 2018, and slightly declining to 85.5% in 2019. No adjusted ROE data is presented for 2020 and 2021, potentially due to the negative or non-calculable equity base in those years. The high adjusted ROE prior to 2020 reflects strong returns when goodwill and similar adjustments are removed, implying a highly profitable core business before the crisis period.

Overall, the data portrays a company that demonstrated solid financial performance and strong profitability from 2017 through 2019, followed by a severe financial impact in 2020 likely associated with external shocks. This impact resulted in substantial reductions in both stockholders’ equity measures and returns on equity. Partial recovery trends are evident in 2021, although adjusted equity remained negative and ROE was substantially lower than pre-2020 levels, indicating ongoing financial challenges.

The financial data indicates several important trends over the five-year period ending in 2021.

Total Assets

The reported total assets show a general upward trend, increasing from $53,292 million in 2017 to $72,459 million in 2021. This growth is indicative of asset expansion over the period. However, the adjusted total assets, which exclude goodwill, follow a similar but somewhat more moderate trend, rising from $43,498 million in 2017 to $62,706 million in 2021. The difference between reported and adjusted assets suggests a consistent presence of goodwill on the balance sheet.

Return on Assets (ROA)

The reported ROA demonstrates relative stability from 2017 to 2019, ranging from 6.53% to 7.39%, reflecting steady profitability relative to asset base. In 2020, there is a significant decline to -17.2%, indicating a substantial loss likely influenced by extraordinary circumstances impacting profitability. In 2021, ROA recovers slightly to 0.39% but remains very low compared to pre-2020 levels.

The adjusted ROA, which accounts for assets excluding goodwill, follows a similar pattern: steady positive returns from 2017 to 2019 (8.22% to 8.71%), a sharp drop to -19.9% in 2020, and a modest recovery to 0.45% in 2021. The slightly higher adjusted ROA compared to reported ROA in earlier years suggests that excluding goodwill provides a more favorable view of asset profitability, though the overall trends remain consistent.

In summary, the data shows asset growth accompanied by strong returns on assets prior to 2020, followed by a dramatic decline in profitability in 2020 with only partial recovery in 2021. The adjusted figures removing goodwill present a similar narrative but with somewhat higher profitability margins before the downturn.