Delta Air Lines Inc. (NYSE:DAL)

The financial data reveals significant shifts in key performance and leverage ratios over the five-year period analyzed.

Asset Turnover

Both reported and adjusted total asset turnover ratios remained relatively stable between 2017 and 2019, ranging from approximately 0.64 to 0.75. However, in 2020, there was a sharp decline to near one-third of previous values (0.24 reported and 0.25 adjusted), indicating a substantial drop in asset efficiency. Partial recovery occurred in 2021, with ratios rising to 0.41 and 0.43 respectively, though still below earlier years.

Current Ratio

The reported current ratio was consistently below 0.5 during 2017–2019, suggesting tight short-term liquidity. In 2020, there was a remarkable increase to 1.09 reported and 1.24 adjusted, indicating improved liquidity during that year. This was followed by a decline in 2021 to 0.76 (reported) and 0.88 (adjusted), reflecting a moderate reduction but remaining above prior pre-2020 levels.

Debt to Equity

Reported debt to equity ratios were stable and moderate from 2017 to 2019, approximately between 0.64 and 0.73. In 2020, there was an extraordinary spike to 19.01 (reported) and 5.21 (adjusted), signaling a large increase in leverage or a severe reduction in equity. By 2021, the ratios decreased substantially but stayed elevated compared to earlier years, with reported at 6.93 and adjusted at 3.40.

Debt to Capital

Debt to capital ratios followed a similar pattern: fairly steady around 0.39 to 0.42 between 2017 and 2019, jumping sharply in 2020 to 0.95 (reported) and 0.84 (adjusted), indicating a near-total reliance on debt for capital. These ratios decreased somewhat in 2021 but remained high, at 0.87 and 0.77 respectively.

Financial Leverage

This metric remained moderately high between 3.77 and 4.40 from 2017 through 2019 but surged dramatically in 2020 to 46.93 (reported) and 10.28 (adjusted). The subsequent reduction in 2021 (to 18.64 reported and 6.98 adjusted) showed some deleveraging, yet leverage remained significantly above pre-2020 levels.

Net Profit Margin

Profitability was positive and improving between 2017 and 2019, with reported margins rising from 8.67% to 10.14%, and adjusted margins similarly increasing from 14.12% to 13.09%. However, 2020 saw a steep plunge into negative territory (-72.45% reported, -91.25% adjusted), reflecting heavy losses. Partial recovery occurred in 2021, with margins turning positive but modest (0.94% reported and 8.72% adjusted).

Return on Equity (ROE)

Reported ROE increased steadily from 25.72% in 2017 to 31.04% in 2019, indicating improving shareholder returns. A sharp decline into extreme negative territory occurred in 2020 (-807.37% reported, -234.91% adjusted), likely due to large losses and equity fluctuations. In 2021, ROE rebounded to 7.20% reported and 25.88% adjusted, signaling partial recovery in profitability for equity holders.

Return on Assets (ROA)

ROA was positive and relatively stable from 2017 through 2019, ranging roughly from 6.5% to 9.6%. The year 2020 saw a negative return of -17.2% (reported) and -22.85% (adjusted), reflecting operational and asset utilization difficulties. In 2021, slight improvement was observed with 0.39% reported and 3.71% adjusted ROA, still significantly below pre-2020 performance.

Overall, the data indicates a period of operational and financial distress in 2020, likely triggered by external or industry-wide factors causing a pronounced deterioration in asset utilization, liquidity, leverage, and profitability. While 2021 showed early signs of recovery across most metrics, key financial ratios remained markedly weaker than the stable and more favorable pre-2020 levels. Elevated leverage ratios in particular suggest a higher financial risk profile persisting beyond the immediate crisis year.

Operating Revenue

Operating revenue demonstrated growth from 2017 to 2019, increasing steadily from 41,244 million USD to 47,007 million USD. However, a significant decline occurred in 2020, with revenue falling sharply to 17,095 million USD, reflecting a considerable disruption during that year. In 2021, there was a partial recovery, with revenue rebounding to 29,899 million USD, but it had not yet returned to pre-2020 levels.

Total Assets

Total assets showed a consistent upward trend throughout the period, rising from 53,292 million USD in 2017 to 72,459 million USD by the end of 2021. This steady increase suggests ongoing investment or accumulation of assets despite fluctuations in revenue.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures the efficiency of asset use in generating sales, decreased from 0.77 in 2017 to 0.73 in 2019, indicating a slight decline in asset utilization efficiency. A pronounced drop occurred in 2020, corresponding with the revenue decline, falling to 0.24. In 2021, this ratio improved to 0.41, signaling a recovery in asset productivity but still below pre-2020 levels.

Adjusted Operating Revenue

Adjusted operating revenue followed a similar pattern to the unadjusted figures, increasing from 41,436 million USD in 2017 to 47,094 million USD in 2019. It then dropped significantly to 17,549 million USD in 2020, indicating underlying operational challenges. By 2021, adjusted revenue rose to 30,276 million USD, denoting partial recovery but remaining below earlier years.

Adjusted Total Assets

Adjusted total assets increased overall from 64,556 million USD in 2017 to 71,214 million USD in 2021. Minor fluctuations were observed, with a slight decline in 2018 and 2019 before rising again through 2020 and 2021. The growth trend is consistent, signifying sustained asset growth despite operational disruptions.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio maintained relative stability between 0.64 and 0.75 from 2017 through 2019, indicating steady asset efficiency. Like the reported ratio, a sharp decline to 0.25 occurred in 2020, reflecting reduced revenue generation capacity. Improvement was seen in 2021 with the ratio increasing to 0.43, though still below historical averages.

The financial data over the five-year period reveals notable fluctuations in both current assets and current liabilities, impacting the liquidity ratios of the company.

Current Assets

Current assets display variability, starting at 7,844 million US dollars in 2017, dipping to 6,340 million in 2018, then rising to 8,249 million in 2019. A significant increase is observed in 2020, reaching 17,404 million, followed by a slight decrease to 15,940 million in 2021. This reflects a substantial boost in asset holdings during the 2020 fiscal year.

Current Liabilities

Current liabilities remain relatively high throughout the period, beginning at 18,573 million US dollars in 2017 and marginally increasing to 18,578 million in 2018. A steady upward trend is visible in 2019 with 20,204 million, but liabilities notably decrease to 15,927 million in 2020 before rising again to 20,966 million in 2021.

Reported Current Ratio

The reported current ratio, a key liquidity indicator, reflects a generally weak position in the earlier years, with ratios below 0.5 from 2017 to 2019 (0.42, 0.34, and 0.41 respectively). A marked improvement occurs in 2020, with the ratio increasing to 1.09, indicative of stronger short-term liquidity, though this strength declines to 0.76 in 2021.

Adjusted Current Assets and Liabilities

Adjusted current assets and liabilities follow a similar pattern to the unadjusted figures but consistently present slightly higher asset values and lower liabilities. This adjustment causes the adjusted current ratio to be moderately higher than the reported ratio in each year.

Adjusted Current Ratio

The adjusted current ratio ranges from 0.41 in 2018 to a peak of 1.24 in 2020. Like the reported ratio, it displays a significant increase in 2020, signaling improved liquidity likely resulting from asset management or liability restructuring during that year. Although there is a decline post-2020, the adjusted ratio remains more favorable than the reported one, ending at 0.88 in 2021.

Overall, the data indicates a period of liquidity challenges from 2017 through 2019, followed by a substantial improvement in 2020. This improvement may correlate with specific financial strategies or external factors influencing the balance of assets and liabilities. The subsequent decrease in 2021 suggests a partial reversal or stabilization of these factors. The use of adjusted figures provides a slightly more optimistic view of liquidity and financial stability across the timeline analyzed.

Total Debt

Total debt shows a gradual increase from 2017 through 2019, rising from $8.8 billion to $11.2 billion. A significant surge occurred in 2020, where total debt almost tripled to approximately $29.2 billion, followed by a slight decline to $26.9 billion in 2021.

Stockholders’ Equity

Stockholders’ equity experienced a relatively stable trend from 2017 to 2019, with a modest increase from $13.9 billion to $15.4 billion. However, in 2020, equity dramatically decreased to $1.5 billion, reflecting a substantial erosion of equity value, before partially recovering to $3.9 billion in 2021.

Reported Debt to Equity Ratio

The reported debt to equity ratio was relatively stable and moderate between 2017 and 2019, fluctuating between 0.64 and 0.73. In 2020, there was a dramatic spike to 19.01, indicating that debt vastly outpaced equity, which aligns with the substantial drop in equity that year. The ratio then decreased significantly to 6.93 in 2021 but remained elevated compared to pre-2020 levels.

Adjusted Total Debt

Adjusted total debt was above reported debt values throughout the period. It increased from $21.0 billion in 2017 to $23.4 billion in 2019, then surged to $35.5 billion in 2020, mirroring the trend of reported debt but showing generally higher amounts. It slightly declined to $34.7 billion in 2021, remaining significantly elevated compared to earlier years.

Adjusted Stockholders’ Equity

Adjusted equity reflects a strengthening trend from 2017 to 2019, increasing from $17.1 billion to $23.4 billion. Nevertheless, it abruptly declined to $6.8 billion in 2020, indicating a negative impact on the company's net assets. A partial recovery is noted in 2021, rising to $10.2 billion, but still below pre-2020 levels.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 1.23 in 2017 to 0.74 in 2019, suggesting improving leverage positions. In 2020, a sharp increase to 5.21 was observed, consistent with the steep increase in adjusted debt and decrease in adjusted equity. The ratio improved to 3.4 in 2021, though it remains significantly higher than the levels prior to 2020.

Total Debt

The total debt exhibited an increasing trend from 2017 through 2020, rising from $8,834 million to a peak of $29,157 million in 2020. This was followed by a slight reduction to $26,920 million in 2021.

Total Capital

Total capital demonstrated a steady growth over the period, increasing from $22,744 million in 2017 to $30,807 million in 2021, with the most notable increment occurring between 2019 and 2020.

Reported Debt to Capital Ratio

The reported debt to capital ratio showed relative stability around 0.39 to 0.42 from 2017 to 2019. However, there was a marked surge in 2020, reaching 0.95, before declining somewhat to 0.87 in 2021. This indicates a substantial increase in leverage in 2020 followed by partial deleveraging.

Adjusted Total Debt

Adjusted total debt exhibited fluctuations over the evaluation period. It decreased from $21,021 million in 2017 to $16,527 million in 2018, then marginally increased to $17,255 million in 2019. A significant increase occurred in 2020, bringing the figure to $35,548 million, followed by a small decline to $34,679 million in 2021.

Adjusted Total Capital

Adjusted total capital showed minor variations but a general upward trend from $38,126 million in 2017 to $44,881 million in 2021, suggesting incremental growth in the capital base despite the volatility seen in adjusted debt.

Adjusted Debt to Capital Ratio

This ratio decreased from 0.55 in 2017 to 0.42 in 2019, reflecting reduced leverage. However, a sharp increase to 0.84 in 2020 was followed by a slight reduction to 0.77 in 2021. These movements parallel the changes observed in adjusted debt and indicate elevated leverage during the pandemic year with some repayment or restructuring thereafter.

Total Assets

Total assets exhibited a general upward trend from 2017 through 2021, increasing from $53,292 million to $72,459 million. This growth suggests a steady expansion of the asset base over the five-year period, with the most pronounced increase observed between 2019 and 2020.

Stockholders' Equity

Stockholders' equity remained relatively stable from 2017 to 2019, fluctuating between $13,687 million and $15,358 million. However, there was a significant decline in 2020 to $1,534 million, followed by a partial recovery to $3,887 million in 2021. This notable drop indicates a substantial reduction in equity, likely influenced by extraordinary events affecting the company’s financial position in 2020.

Reported Financial Leverage

The reported financial leverage ratio remained moderately stable around 4.0 from 2017 to 2019 but surged dramatically in 2020 to 46.93, before decreasing to 18.64 in 2021. This sharp increase in 2020 reflects the steep decline in equity relative to assets, indicating a period of significantly increased risk and reliance on debt financing during that year.

Adjusted Total Assets

Adjusted total assets followed a similar upward path as total assets, increasing from $64,556 million in 2017 to $71,214 million in 2021. Despite some fluctuations, this measure also shows consistent asset growth over the period, with a slight dip noted in 2018.

Adjusted Stockholders' Equity

Adjusted stockholders' equity increased steadily from 2017 ($17,105 million) to 2019 ($23,435 million), before markedly declining to $6,817 million in 2020. A modest rebound to $10,202 million occurred in 2021. This pattern mirrors the trend in reported equity, confirming the 2020 equity decline and partial recovery in the subsequent year.

Adjusted Financial Leverage

Adjusted financial leverage declined from 3.77 in 2017 to 2.75 in 2019, signaling decreasing leverage and improved capital structure. However, leverage spiked sharply to 10.28 in 2020, indicating higher risk, before improving to 6.98 in 2021, though still above pre-2020 levels. This pattern aligns with the equity reduction and partial recovery observed in the adjusted figures.

The financial data reveals significant fluctuations across the reported periods, reflecting notable operational and market challenges.

Net Income (Loss)

From 2017 to 2019, net income increased steadily from $3,577 million to $4,767 million, indicating strong profitability growth. However, in 2020, there was a drastic reversal, with a net loss of $12,385 million, reflecting a severe financial impact. The subsequent year, 2021, showed a recovery with a return to profitability at $280 million, although this remains far below pre-2020 levels.

Operating Revenue

Operating revenue increased consistently from $41,244 million in 2017 to $47,007 million in 2019, showing steady growth. In 2020, revenue sharply declined to $17,095 million, approximately 36% of the 2019 level, likely due to extraordinary market disruptions. By 2021, revenue partially recovered to $29,899 million but had not returned to pre-2020 figures.

Reported Net Profit Margin

The reported net profit margin followed the trend of net income, rising from 8.67% in 2017 to a peak of 10.14% in 2019. In 2020, it plunged dramatically to -72.45%, highlighting the extent of losses incurred relative to revenue. In 2021, the margin improved marginally to 0.94%, indicating a return to positive profitability but at a significantly reduced level.

Adjusted Net Income (Loss)

Adjusted net income mirrored the patterns of reported net income but at higher absolute values, suggesting adjustments added to reported profit figures. It increased from $5,852 million in 2017 to a peak of $6,164 million in 2019, then fell sharply to a $16,014 million loss in 2020. The rebound in 2021 to $2,640 million marked a strong recovery, although adjusted income remained below pre-2019 levels.

Adjusted Operating Revenue

Adjusted operating revenue increased modestly from $41,436 million in 2017 to $47,094 million in 2019, consistent with reported revenue trends. A substantial decline occurred in 2020 to $17,549 million, followed by a partial recovery to $30,276 million in 2021, showing resilience but incomplete return to previous highs.

Adjusted Net Profit Margin

The adjusted net profit margin was highest in 2017 at 14.12%, then decreased to 12.34% in 2018 before slightly increasing to 13.09% in 2019. A significant contraction occurred in 2020 with a negative margin of -91.25%, reflecting extreme loss conditions. By 2021, the margin recovered considerably to 8.72%, indicating a positive but subdued profit outlook compared to earlier years.

Overall, the data illustrates a strong upward trend in revenue and profitability from 2017 to 2019, followed by a severe downturn in 2020, likely due to extraordinary events impacting operations. The year 2021 showed signs of recovery in both revenue and profitability metrics, although levels remained below the pre-2020 benchmark. Profit margins were notably volatile, emphasizing the operational challenges and subsequent gradual improvement in financial performance.

The financial data reveal considerable fluctuations in profitability and equity metrics over the five-year period analyzed.

Net Income (Loss)

Net income showed a generally upward trend from 2017 to 2019, increasing from 3,577 million US dollars to 4,767 million US dollars. In 2020, however, there was a significant negative impact, with net income recording a loss of 12,385 million US dollars. By 2021, there was a recovery to a positive net income of 280 million US dollars, though this level remained substantially below the pre-2020 figures.

Stockholders’ Equity

Stockholders’ equity remained relatively stable from 2017 through 2019, ranging from approximately 13,687 to 15,358 million US dollars. A sharp decline occurred in 2020, with equity falling to 1,534 million US dollars, indicating financial strain during that period. In 2021, equity improved to 3,887 million US dollars but still showed a significant reduction compared to earlier years.

Reported Return on Equity (ROE)

The reported ROE demonstrated strong performance between 2017 and 2019, increasing from 25.72% to 31.04%. The year 2020 saw an extreme negative return of -807.37%, reflecting substantial losses relative to equity. In 2021, ROE rebounded to 7.2%, representing a partial recovery but remaining well below the levels seen prior to 2020.

Adjusted Net Income (Loss)

The adjusted net income metric followed a similar pattern to the reported net income, with growth from 5,852 million US dollars in 2017 to 6,164 million US dollars in 2019. The impact of 2020 was even more severe on the adjusted figures, showing a loss of 16,014 million US dollars, which exceeds the reported loss, indicating more extensive adjustments for that year. In 2021, adjusted net income recovered to 2,640 million US dollars but did not reach pre-2020 levels.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased progressively from 17,105 million US dollars in 2017 to 23,435 million US dollars in 2019. The year 2020 caused a significant reduction to 6,817 million US dollars, followed by a partial recovery in 2021 to 10,202 million US dollars. Despite this rebound, the equity remains diminished relative to the initial years.

Adjusted Return on Equity (ROE)

Adjusted ROE declined from 34.21% in 2017 to 26.3% in 2019, suggesting a moderation in returns even before the pandemic year. The loss in 2020 was very large with an adjusted ROE of -234.91%, a severe contraction reflecting the significant adjusted net loss relative to adjusted equity. By 2021, adjusted ROE recovered strongly to 25.88%, nearly reaching the levels last seen in 2018 and 2019.

Overall, the data indicate robust profitability and equity growth through 2019, a sharp and unprecedented decline in 2020 consistent with extraordinary adverse conditions, and a partial but incomplete financial recovery in 2021. Adjusted figures highlight even greater losses and volatility in 2020 but also attest to a resilient recovery in the subsequent year.

Net Income (Loss)

The net income shows an overall fluctuating trend with positive values from 2017 to 2019, peaking in 2019 at 4,767 million US dollars. There is a substantial and sharp decline in 2020, resulting in a significant loss of 12,385 million US dollars, followed by a partial recovery to a modest profit of 280 million US dollars in 2021.

Total Assets

Total assets demonstrate a steady and consistent upward progression throughout the entire period, increasing from 53,292 million US dollars in 2017 to 72,459 million US dollars in 2021. This indicates ongoing asset growth despite profitability challenges in 2020.

Reported Return on Assets (ROA)

The reported ROA mirrors the net income trend. It remains relatively stable between 6.5% and 7.4% during 2017-2019, drops to a sharp negative -17.2% in 2020 reflecting the net loss, and slightly recovers to 0.39% in 2021. This highlights the impact of the 2020 loss on asset profitability.

Adjusted Net Income (Loss)

Adjusted net income follows a pattern similar to reported net income but with somewhat higher positive values in the initial years, peaking at 6,164 million US dollars in 2019. The adjusted figure shows a more pronounced loss in 2020 at 16,014 million US dollars, indicative of non-recurring or special items adjustments, and rebounds in 2021 to 2,640 million US dollars, surpassing the reported net income recovery.

Adjusted Total Assets

Adjusted total assets fluctuate slightly but generally trend upwards from 64,556 million US dollars in 2017 to 71,214 million US dollars in 2021. The adjustments generally result in higher asset bases than reported figures in earlier years, with a smaller gap in later years, reflecting consistency with overall asset growth.

Adjusted Return on Assets (Adjusted ROA)

Adjusted ROA is consistently higher than reported ROA from 2017 to 2019, remaining in the 9.07% to 9.57% range, indicating improved profitability when adjusting for special items. The ratio plunges to a negative -22.85% in 2020, exceeding the reported ROA's decline, but rebounds moderately to 3.71% in 2021, which is significantly better than the reported ROA, suggesting a stronger recovery on adjusted profitability grounds.