Delta Air Lines Inc. (NYSE:DAL)

The financial data indicates notable fluctuations in current assets and adjusted current assets over the five-year period. Both metrics exhibit a similar trend, suggesting consistency in the adjustment methodology applied.

Current assets

From December 31, 2017, to December 31, 2018, current assets declined from 7,844 million USD to 6,340 million USD, marking a significant reduction. In the subsequent year, they increased to 8,249 million USD, recovering from the previous decrease. By the end of 2020, there was a substantial surge in current assets reaching 17,404 million USD, more than doubling the previous year's figure. However, in 2021, current assets slightly decreased to 15,940 million USD, still maintaining an elevated level compared to pre-2020 years.

Adjusted current assets

This metric mirrors the pattern of current assets closely. It initially decreased from 7,856 million USD in 2017 to 6,352 million USD in 2018, followed by an increase to 8,262 million USD in 2019. A sharp rise to 17,493 million USD occurred by the end of 2020, with a minor decline to 15,990 million USD in 2021. The minimal discrepancy between adjusted and unadjusted current assets suggests few adjustments were made or the adjustments were marginal.

Overall, the significant increase in both current and adjusted current assets in 2020 may reflect the company's response to extraordinary events or strategic liquidity management during that year. The subsequent decrease in 2021, while still maintaining a higher level than previous years, suggests a partial normalization or reallocation of current assets. The earlier decline observed in 2018 followed by recovery in 2019 may indicate volatility or restructuring impacting short-term assets during this period.

The financial data reveals a general upward trend in total assets over the analyzed period from 2017 to 2021. Total assets increased steadily from $53,292 million in 2017 to $72,459 million in 2021. This represents a significant growth over the five years, suggesting expansion or increased capital investments by the company.

It is notable that total assets experienced continuous growth each year, with the most substantial increase occurring between 2018 and 2020. The rise from 2019 to 2020 is particularly significant, considering the general economic challenges faced during that period, indicating possible strategic asset accumulation or revaluation.

Adjusted total assets, which may exclude certain items or apply different valuation methods, exhibit a more fluctuating pattern. The adjusted figure started at $64,556 million in 2017 and declined to $60,036 million in 2018. Subsequently, it showed recovery and growth, increasing to $64,425 million in 2019 and further to $70,097 million in 2020. However, adjusted total assets slightly decreased to $71,214 million in 2021 compared to total assets.

The variances between total assets and adjusted total assets suggest differences in asset valuation or classification. The adjusted total assets were consistently higher than reported total assets in 2017 but became slightly lower by 2018, indicating possible adjustments in asset recording or accounting standards during that period.

Overall, the upward trend in both total and adjusted total assets reflects asset growth, while the fluctuations in adjusted figures highlight changes in asset adjustments or reporting practices. These patterns warrant further review to understand underlying causes, especially given the contrasting movements between the two asset measures.

Current Liabilities

Current liabilities remained relatively stable between 2017 and 2018, with values of approximately $18,573 million and $18,578 million, respectively. There was an increase in 2019 to around $20,204 million, followed by a notable decline in 2020 to about $15,927 million. In 2021, current liabilities rose again to approximately $20,966 million, exceeding the levels observed in previous years.

Adjusted Current Liabilities

Adjusted current liabilities show a similar pattern to current liabilities but at slightly lower absolute values throughout the period. Starting at $16,751 million in 2017, there was a decrease to $15,589 million in 2018. A rise followed in 2019 to $16,985 million, then a decline to $14,150 million in 2020. In 2021, adjusted current liabilities increased to $18,256 million, reflecting a recovery trend but remaining below the peak levels of total current liabilities.

Overall Analysis

The data reveals fluctuations in both current and adjusted current liabilities over the five-year period. A discernible drop in liabilities occurs in 2020, which may indicate the impact of specific operational or financial adjustments during that year. The subsequent rebound in 2021 to higher levels than those in 2017 and 2018 suggests increased short-term obligations or changes in working capital management. The adjusted current liabilities tend to track the general movement of current liabilities, consistently showing lower values, which likely accounts for certain exclusions or adjustments applied to the reported totals. This pattern indicates the company experienced variability in its short-term financial obligations, with notable reductions in 2020 followed by an uptick in the following year.

Total liabilities

From 2017 to 2019, total liabilities increased steadily from 39,382 million USD to 49,174 million USD, indicating a gradual rise in the company's obligations. In 2020, there was a significant jump to 70,462 million USD, reflecting a sharp increase likely influenced by extraordinary circumstances. In 2021, total liabilities slightly decreased to 68,572 million USD, suggesting some reduction or stabilization after the prior year's surge.

Adjusted total liabilities

Adjusted total liabilities started at 47,451 million USD in 2017, then decreased to 39,775 million USD in 2018 and slightly increased to 40,990 million USD in 2019. Thereafter, a marked increase occurred in 2020, with adjusted liabilities rising to 63,280 million USD. In 2021, there was a modest decline to 61,013 million USD. This pattern shows a more volatile trend compared to total liabilities, with a significant peak aligned with the 2020 period.

Insights

Both total and adjusted total liabilities exhibit a pronounced increase in 2020, indicating a considerable rise in the company's financial obligations during that year. The adjustments to liabilities suggest the presence of reclassifications or refinements in accounting treatment leading to differing magnitudes compared to the reported total liabilities. The slight reductions observed in 2021 imply initial efforts toward liability management or debt reduction following the heightened levels in 2020.

The analysis of the annual financial data reveals significant fluctuations in both stockholders’ equity and adjusted stockholders’ equity over the five-year period ending in 2021.

Stockholders’ Equity

There is a general decline in stockholders’ equity from 2017 through 2018, decreasing slightly from 13,910 million US dollars to 13,687 million US dollars. In 2019, stockholders’ equity increased notably to 15,358 million US dollars. However, 2020 saw a dramatic decline, dropping sharply to 1,534 million US dollars, which is an approximate 90% decrease from the previous year. A partial recovery is observed in 2021, with stockholders’ equity rising to 3,887 million US dollars, yet it remains substantially below the levels recorded prior to 2020.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity follows a somewhat similar pattern but with higher absolute values across all years compared to the unadjusted measure. From 2017 to 2019, there is a consistent upward trend from 17,105 million US dollars to 23,435 million US dollars, showing healthy growth. In 2020, this metric experiences a significant decrease to 6,817 million US dollars, a reduction of over 70% from 2019. The year 2021 marks an improvement to 10,202 million US dollars; nonetheless, this figure remains well below the peak in 2019.

Overall, the data indicates that both equity measures were relatively stable and growing up to 2019, followed by a sharp decline in 2020, likely attributable to extraordinary external factors impacting the company's financial position. While some recovery is evident in 2021, stockholders’ equity levels have not returned to pre-2020 figures, highlighting continued challenges or conservative financial management during that period.

The financial data demonstrates notable fluctuations across the analyzed periods, particularly in the years 2020 and 2021, reflecting significant impacts on the company's capital structure.

Total reported debt

This metric shows a steady increase from 2017 to 2019, rising from approximately $8.8 billion to $11.2 billion. A sharp escalation is observed in 2020, reaching nearly $29.2 billion, followed by a slight decrease in 2021 to about $26.9 billion. This suggests a substantial increase in leveraging during 2020, potentially to address operational disruptions or liquidity needs.

Stockholders’ equity

Equity values exhibit relative stability from 2017 through 2019, hovering around $13.7 billion to $15.4 billion. However, a pronounced decline occurs in 2020, declining precipitously to approximately $1.5 billion, before recovering modestly to around $3.9 billion in 2021. This steep reduction alongside increased debt indicates a significant deterioration in residual interest, potentially caused by operational losses or asset impairments during 2020.

Total reported capital

Total reported capital, the aggregate of debt and equity, rises gradually from roughly $22.7 billion in 2017 to $26.5 billion in 2019. It then surges to $30.7 billion in 2020 and remains relatively stable into 2021. The increase primarily driven by elevated debt levels suggests a shift in capital structure, with greater financial risk exposure during the pandemic period.

Adjusted total debt

Adjusted total debt shows an initial decline from $21.0 billion in 2017 to $16.5 billion in 2018, followed by a modest increase in 2019 to $17.3 billion. A significant jump to $35.5 billion is evident in 2020, with a slight reduction to $34.7 billion in 2021. This pattern aligns with total reported debt trends, though the adjusted figures emphasize an even more pronounced leveraging spike during 2020.

Adjusted stockholders’ equity

The adjusted equity reflects growth from $17.1 billion in 2017 to $23.4 billion in 2019, indicating stronger underlying equity positions compared to reported figures. However, like the reported equity, adjusted equity plummets to $6.8 billion in 2020 and partially recovers to $10.2 billion in 2021. Despite the recovery, the adjusted equity remains well below pre-2020 levels, signaling persistent financial strain.

Adjusted total capital

This measure grows from $38.1 billion in 2017 to $40.7 billion in 2019, followed by continued growth to $42.4 billion in 2020 and $44.9 billion in 2021. The steady increase, despite equity declines, suggests rising capital base primarily funded through increased debt, underscoring a more leveraged position overall.

In summary, the data depicts a company that experienced significant financial stress during 2020, characterized by a sharp rise in debt and a decline in equity, reflecting heightened leverage and potential operational losses likely related to the global environment at that time. Although some recovery in equity is apparent in 2021, the capital structure remains more debt-heavy than in previous years, indicating ongoing financial management challenges and increased risk exposure.

The financial data reveals notable fluctuations in operating revenue and adjusted operating revenue over the analyzed five-year period. Both metrics exhibit a consistent upward trajectory from 2017 through 2019, reflecting a period of growth.

Operating Revenue

The operating revenue increased steadily from $41,244 million in 2017 to $44,438 million in 2018, and further to $47,007 million in 2019. This demonstrates a consistent year-over-year growth trend of approximately 7.8% from 2017 to 2018 and about 5.7% from 2018 to 2019.

However, in 2020, operating revenue sharply declined to $17,095 million, representing a decrease of approximately 63.6% relative to the previous year. This decline is significant and suggests a major disruption impacting revenue generation during that period.

In 2021, there was a partial recovery with operating revenue rising to $29,899 million, although this figure remains substantially below pre-2020 levels, indicating that full recovery was not achieved by year-end 2021.

Adjusted Operating Revenue

The adjusted operating revenue follows a very similar pattern. It rose from $41,436 million in 2017 to $44,758 million in 2018, and then to $47,094 million in 2019, mirroring the growth observed in operating revenue.

In 2020, adjusted operating revenue dropped steeply to $17,549 million, aligning closely with the trend seen in the unadjusted operating revenue and highlighting the severity of the downturn.

Recovery is evident in 2021 with adjusted operating revenue increasing to $30,276 million. While improved compared to 2020, the value still falls short of the pre-pandemic peak.

The overall trend showcases a period of growth leading up to 2019, followed by a marked contraction in 2020, likely influenced by external factors causing business disruption, and a subsequent partial recovery in 2021. Despite this improvement, operating revenues have not returned to the levels observed prior to the decline, indicating potential ongoing challenges or market adjustments.

Net Income (Loss)

From 2017 to 2019, net income exhibited a steady upward trend, increasing from 3,577 million US dollars to 4,767 million US dollars. This growth trend was sharply reversed in 2020, when the company recorded a significant net loss of 12,385 million US dollars. By 2021, net income partially recovered, returning to a positive value of 280 million US dollars, though still markedly below pre-pandemic levels.

Adjusted Net Income (Loss)

Adjusted net income showed a similar pattern, with values increasing from 5,852 million US dollars in 2017 to 6,164 million US dollars in 2019, indicating consistent profitability before adjustments. However, 2020 saw a pronounced decline to a loss of 16,014 million US dollars, reflecting substantial negative impacts likely related to extraordinary or non-recurring items. In 2021, adjusted net income improved significantly to 2,640 million US dollars, demonstrating a notable rebound, though it remained below the levels observed before 2020.

General Observations

The data reveals a strong financial performance leading up to 2019, with growth in both net income and adjusted net income. The year 2020 stands out as an anomaly with dramatic losses, indicating severe operational or market disruptions during this period. Recovery efforts appear to have been partially successful in 2021, yet profitability has not fully returned to the peak levels achieved prior to 2020. The disparity between net income and adjusted net income losses in 2020 suggests the presence of significant adjustments impacting reported results.