Stock Analysis on Net
Stock Analysis on Net

Delta Air Lines Inc. (NYSE:DAL)

This company has been moved to the archive! The financial data has not been updated since July 13, 2022.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Delta Air Lines Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal — (94) (94) (187) 4
State and local 1 (3) 39 26 (5)
International 3 5 13 13 54
Current tax provision (benefit) 4 (92) (42) (148) 53
Federal 130 (2,766) 1,343 1,226 1,911
State and local (16) (344) 130 138 160
Deferred tax provision 114 (3,110) 1,473 1,364 2,071
Income tax provision (benefit) 118 (3,202) 1,431 1,216 2,124

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Current tax provision (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Delta Air Lines Inc. current tax provision (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred tax provision Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Delta Air Lines Inc. deferred tax provision decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.
Income tax provision (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Delta Air Lines Inc. income tax provision (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Effective Income Tax Rate (EITR)

Delta Air Lines Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
State taxes, net of federal benefit -4.40% 1.90% 2.30% 2.50% 1.80%
Permanent differences 4.90% -0.60% -0.30% 0.00% 0.00%
Valuation allowance 9.10% -2.60% 0.70% 0.00% 0.00%
Other -0.80% 0.80% -0.60% 0.60% -2.20%
Effective income tax rate, before Tax Cuts and Jobs Act adjustment 29.80% 20.50% 23.10% 24.10% 34.60%
Tax Cuts and Jobs Act adjustment 0.00% 0.00% 0.00% -0.50% 2.60%
Effective income tax rate 29.80% 20.50% 23.10% 23.60% 37.20%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Effective income tax rate, before Tax Cuts and Jobs Act adjustment Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Delta Air Lines Inc. effective income tax rate, before Tax Cuts and Jobs Act adjustment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Components of Deferred Tax Assets and Liabilities

Delta Air Lines Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net operating loss carryforwards 1,301 1,495 560 674 1,440
Capital loss carryforward 480 483 — — —
Pension, postretirement and other benefits 2,089 2,956 2,241 2,435 2,545
Investments 314 — — — —
Deferred revenue 2,288 1,797 1,667 1,620 1,024
Lease liabilities 2,452 2,185 1,510 1,579 —
Other 494 611 380 546 1,125
Deferred tax assets, before valuation allowance 9,418 9,527 6,358 6,854 6,134
Valuation allowance (833) (460) (58) (13) (19)
Deferred tax assets 8,585 9,067 6,300 6,841 6,115
Depreciation (4,463) (4,507) (5,190) (4,185) (3,936)
Operating lease assets (1,676) (1,324) (1,298) (1,388) —
Intangible assets (1,097) (1,076) (1,049) (1,052) (1,070)
Other (55) (172) (99) (137) (174)
Deferred tax liabilities (7,291) (7,079) (7,636) (6,762) (5,180)
Net deferred tax assets (liabilities) 1,294 1,988 (1,336) 79 935

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets, before valuation allowance Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Delta Air Lines Inc. deferred tax assets, before valuation allowance increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Delta Air Lines Inc. deferred tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Delta Air Lines Inc. net deferred tax assets (liabilities) increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Deferred Tax Assets and Liabilities, Classification

Delta Air Lines Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets 1,295 1,988 120 242 935
Deferred tax liabilities — — 1,456 163 —

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Delta Air Lines Inc. deferred tax assets increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Adjustments to Financial Statements: Removal of Deferred Taxes

Delta Air Lines Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 72,459 71,996 64,532 60,266 53,292
Less: Noncurrent deferred tax assets, net 1,295 1,988 120 242 935
Total assets (adjusted) 71,164 70,008 64,412 60,024 52,357
Adjustment to Total Liabilities
Total liabilities (as reported) 68,572 70,462 49,174 46,579 39,382
Less: Noncurrent deferred tax liabilities, net — — 1,456 163 —
Total liabilities (adjusted) 68,572 70,462 47,718 46,416 39,382
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 3,887 1,534 15,358 13,687 13,910
Less: Net deferred tax assets (liabilities) 1,294 1,988 (1,336) 79 935
Stockholders’ equity (adjusted) 2,593 (454) 16,694 13,608 12,975
Adjustment to Net Income (loss)
Net income (loss) (as reported) 280 (12,385) 4,767 3,935 3,577
Add: Deferred income tax expense (benefit) 114 (3,110) 1,473 1,364 2,071
Net income (loss) (adjusted) 394 (15,495) 6,240 5,299 5,648

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Delta Air Lines Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Delta Air Lines Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 0.94% -72.45% 10.14% 8.86% 8.67%
Adjusted net profit margin 1.32% -90.64% 13.27% 11.92% 13.69%
Total Asset Turnover
Reported total asset turnover 0.41 0.24 0.73 0.74 0.77
Adjusted total asset turnover 0.42 0.24 0.73 0.74 0.79
Financial Leverage
Reported financial leverage 18.64 46.93 4.20 4.40 3.83
Adjusted financial leverage 27.44 — 3.86 4.41 4.04
Return on Equity (ROE)
Reported ROE 7.20% -807.37% 31.04% 28.75% 25.72%
Adjusted ROE 15.19% — 37.38% 38.94% 43.53%
Return on Assets (ROA)
Reported ROA 0.39% -17.20% 7.39% 6.53% 6.71%
Adjusted ROA 0.55% -22.13% 9.69% 8.83% 10.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Delta Air Lines Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Delta Air Lines Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Delta Air Lines Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Delta Air Lines Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 280 (12,385) 4,767 3,935 3,577
Operating revenue 29,899 17,095 47,007 44,438 41,244
Profitability Ratio
Net profit margin1 0.94% -72.45% 10.14% 8.86% 8.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 394 (15,495) 6,240 5,299 5,648
Operating revenue 29,899 17,095 47,007 44,438 41,244
Profitability Ratio
Adjusted net profit margin2 1.32% -90.64% 13.27% 11.92% 13.69%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Operating revenue
= 100 × 280 ÷ 29,899 = 0.94%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Operating revenue
= 100 × 394 ÷ 29,899 = 1.32%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Delta Air Lines Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Operating revenue 29,899 17,095 47,007 44,438 41,244
Total assets 72,459 71,996 64,532 60,266 53,292
Activity Ratio
Total asset turnover1 0.41 0.24 0.73 0.74 0.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Operating revenue 29,899 17,095 47,007 44,438 41,244
Adjusted total assets 71,164 70,008 64,412 60,024 52,357
Activity Ratio
Adjusted total asset turnover2 0.42 0.24 0.73 0.74 0.79

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Operating revenue ÷ Total assets
= 29,899 ÷ 72,459 = 0.41

2 Adjusted total asset turnover = Operating revenue ÷ Adjusted total assets
= 29,899 ÷ 71,164 = 0.42

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Delta Air Lines Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 72,459 71,996 64,532 60,266 53,292
Stockholders’ equity 3,887 1,534 15,358 13,687 13,910
Solvency Ratio
Financial leverage1 18.64 46.93 4.20 4.40 3.83
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 71,164 70,008 64,412 60,024 52,357
Adjusted stockholders’ equity 2,593 (454) 16,694 13,608 12,975
Solvency Ratio
Adjusted financial leverage2 27.44 — 3.86 4.41 4.04

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 72,459 ÷ 3,887 = 18.64

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 71,164 ÷ 2,593 = 27.44

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 280 (12,385) 4,767 3,935 3,577
Stockholders’ equity 3,887 1,534 15,358 13,687 13,910
Profitability Ratio
ROE1 7.20% -807.37% 31.04% 28.75% 25.72%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 394 (15,495) 6,240 5,299 5,648
Adjusted stockholders’ equity 2,593 (454) 16,694 13,608 12,975
Profitability Ratio
Adjusted ROE2 15.19% — 37.38% 38.94% 43.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 280 ÷ 3,887 = 7.20%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 394 ÷ 2,593 = 15.19%

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) 280 (12,385) 4,767 3,935 3,577
Total assets 72,459 71,996 64,532 60,266 53,292
Profitability Ratio
ROA1 0.39% -17.20% 7.39% 6.53% 6.71%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) 394 (15,495) 6,240 5,299 5,648
Adjusted total assets 71,164 70,008 64,412 60,024 52,357
Profitability Ratio
Adjusted ROA2 0.55% -22.13% 9.69% 8.83% 10.79%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 280 ÷ 72,459 = 0.39%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 394 ÷ 71,164 = 0.55%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Delta Air Lines Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.