Analysis of Inventory
Inventory Disclosure
Delta Air Lines Inc., balance sheet: inventory
US$ in millions
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).
Total inventory levels experienced significant volatility between 2017 and 2021, characterized by a substantial decline in 2020 and a subsequent recovery in 2021. The overall inventory composition is heavily influenced by fuel stockpiles, which represent the largest portion of the total value throughout the period.
- Total Inventory Trends
- Total inventories decreased from 1,329 million USD in 2017 to 1,055 million USD in 2018, before rebounding to 1,251 million USD in 2019. A sharp contraction occurred in 2020, with levels falling to 732 million USD, representing the lowest point in the observed period. By the end of 2021, inventories recovered to 1,098 million USD, though they remained below 2017 and 2019 peaks.
- Fuel Inventory Dynamics
- Fuel inventory serves as the primary driver of total inventory fluctuations. This category saw a decrease to 592 million USD in 2018 and a significant drop to 377 million USD in 2020. The increase to 694 million USD in 2021 indicates a restoration of fuel holdings following the 2020 minimum, although the level remained below the 916 million USD reported in 2017.
- Expendable Parts and Supplies Analysis
- Inventories of expendable parts and supplies, net of obsolescence allowances, showed a steady upward trend from 2017 to 2019, rising from 413 million USD to 521 million USD. Similar to fuel, this segment experienced a notable reduction in 2020 to 355 million USD. The recovery to 404 million USD in 2021 indicates a return to operational levels closely aligned with the 2017 baseline.
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