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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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Delta Air Lines Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Current maturities of debt and finance leases 2.46 2.41 3.54 2.52 4.21
Current maturities of operating leases 0.97 0.94 1.24 1.58 0.00
Air traffic liability 8.60 5.62 7.93 7.73 9.17
Accounts payable 5.85 3.94 5.06 4.94 6.89
Accrued salaries and related benefits 3.39 2.90 5.74 5.45 5.67
Loyalty program deferred revenue 3.74 2.47 4.99 4.96 3.42
Fuel card obligation 1.52 1.53 1.14 1.78 2.00
Other accrued liabilities 2.41 2.32 1.67 1.85 3.49
Current liabilities 28.93% 22.12% 31.31% 30.83% 34.85%
Debt and finance leases, excluding current maturities 34.69 38.09 13.75 13.69 12.37
Noncurrent air traffic liability 0.18 0.69 0.00 0.00 0.00
Pension, postretirement and related benefits 8.33 14.76 13.10 15.20 18.41
Loyalty program deferred revenue 6.69 7.51 5.44 6.06 4.31
Noncurrent operating leases 9.74 7.94 8.20 9.63 0.00
Deferred income taxes, net 0.00 0.00 2.26 0.27 0.00
Other noncurrent liabilities 6.07 6.75 2.15 1.61 3.96
Noncurrent liabilities 65.70% 75.75% 44.89% 46.46% 39.05%
Total liabilities 94.64% 97.87% 76.20% 77.29% 73.90%
Common stock at $0.0001 par value 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 15.80 15.64 17.25 19.37 22.62
Retained earnings (accumulated deficit) -0.20 -0.59 19.30 16.66 18.08
Accumulated other comprehensive loss -9.84 -12.55 -12.38 -12.98 -14.30
Treasury stock, at cost -0.39 -0.36 -0.37 -0.33 -0.30
Stockholders’ equity 5.36% 2.13% 23.80% 22.71% 26.10%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The financial structure exhibits a dramatic shift in leverage and capital composition between 2017 and 2021, characterized by a substantial increase in total liabilities and a corresponding erosion of stockholders' equity. While the company maintained a relatively stable leverage ratio from 2017 to 2019, a critical inflection point occurred in 2020, where total liabilities spiked to 97.87% of the total balance sheet, leaving stockholders' equity at a minimum of 2.13%.

Capital Structure and Leverage
Total liabilities grew from 73.90% in 2017 to a peak of 97.87% in 2020, before moderating slightly to 94.64% in 2021. This indicates a heavy reliance on debt financing to sustain operations during the 2020-2021 period. Conversely, stockholders' equity plummeted from 26.10% in 2017 to 5.36% by 2021, reflecting a significant reduction in the equity cushion available to creditors.
Noncurrent Debt and Long-term Obligations
A sharp increase is observed in noncurrent debt and finance leases, which rose from approximately 13% in 2017-2019 to 38.09% in 2020 and 34.69% in 2021. This surge suggests a strategic shift toward long-term borrowing to maintain liquidity. Simultaneously, pension and postretirement benefit obligations showed a steady downward trend, decreasing from 18.41% in 2017 to 8.33% in 2021, suggesting a reduction in the relative weight of these long-term liabilities.
Current Liability Dynamics
Current liabilities remained relatively stable between 30% and 35% from 2017 to 2019, dipped to 22.12% in 2020, and recovered to 28.93% in 2021. Air traffic liability, a key indicator of forward-looking revenue, fluctuated in tandem with operational activity, dropping to 5.62% in 2020 before rebounding to 8.60% in 2021. Loyalty program deferred revenue also showed volatility, peaking in noncurrent terms during 2020 at 7.51%.
Equity Erosion and Retained Earnings
The most notable decline is found in retained earnings, which moved from a positive 19.30% in 2019 to an accumulated deficit of -0.59% in 2020 and -0.20% in 2021. This transition to a deficit highlights significant losses that depleted the company's internal reserves. Additionally, accumulated other comprehensive loss remained a persistent drag on equity, although it improved from -14.30% in 2017 to -9.84% in 2021.

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