Microsoft Excel LibreOffice Calc

Delta Air Lines Inc. (DAL)


Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Delta Air Lines Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt to equity 0.71 0.64 0.60 0.77 1.11
Debt to capital 0.42 0.39 0.37 0.43 0.53
Interest coverage 17.56 15.40 18.10 15.88 2.65

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Delta Air Lines Inc.’s debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Delta Air Lines Inc.’s debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Delta Air Lines Inc.’s interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Debt to Equity

Delta Air Lines Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current maturities of long-term debt and finance leases 1,518  2,242  1,131  1,563  1,216 
Long-term debt and finance leases, excluding current maturities 8,253  6,592  6,201  6,766  8,561 
Total debt 9,771  8,834  7,332  8,329  9,777 
Stockholders’ equity 13,687  13,910  12,287  10,850  8,813 
Ratio
Debt to equity1 0.71 0.64 0.60 0.77 1.11
Benchmarks
Debt to Equity, Competitors
Booking Holdings Inc. 0.98 0.85 0.73 0.70 0.45
Marriott International Inc. 4.20 2.21 1.59
McDonald’s Corp. 3.40 1.17
Starbucks Corp. 8.07 0.72 0.61 0.40 0.39
Debt to Equity, Sector
Travel & Leisure 3.48 1.93 1.69 1.56 1.04
Debt to Equity, Industry
Consumer Services 1.26 1.07 0.97 0.92 0.74

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 9,771 ÷ 13,687 = 0.71

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Delta Air Lines Inc.’s debt-to-equity ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Debt to Capital

Delta Air Lines Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Current maturities of long-term debt and finance leases 1,518  2,242  1,131  1,563  1,216 
Long-term debt and finance leases, excluding current maturities 8,253  6,592  6,201  6,766  8,561 
Total debt 9,771  8,834  7,332  8,329  9,777 
Stockholders’ equity 13,687  13,910  12,287  10,850  8,813 
Total capital 23,458  22,744  19,619  19,179  18,590 
Ratio
Debt to capital1 0.42 0.39 0.37 0.43 0.53
Benchmarks
Debt to Capital, Competitors
Booking Holdings Inc. 0.50 0.46 0.42 0.41 0.31
Marriott International Inc. 0.81 0.69 0.61 7.94 2.39
McDonald’s Corp. 1.25 1.12 1.09 0.77 0.54
Starbucks Corp. 0.89 0.42 0.38 0.29 0.28
Debt to Capital, Sector
Travel & Leisure 0.78 0.66 0.63 0.61 0.51
Debt to Capital, Industry
Consumer Services 0.56 0.52 0.49 0.48 0.42

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 9,771 ÷ 23,458 = 0.42

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Delta Air Lines Inc.’s debt-to-capital ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

Interest Coverage

Delta Air Lines Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Net income 3,935  3,577  4,373  4,526  659 
Add: Income tax expense 1,216  2,124  2,263  2,631  413 
Add: Interest expense, net 311  396  388  481  650 
Earnings before interest and tax (EBIT) 5,462  6,097  7,024  7,638  1,722 
Ratio
Interest coverage1 17.56 15.40 18.10 15.88 2.65
Benchmarks
Interest Coverage, Competitors
Booking Holdings Inc. 18.97 18.32 14.05 20.52 34.84
Marriott International Inc. 7.90 10.85 6.06 8.51 10.46
McDonald’s Corp. 8.97 10.31 8.76 11.27 13.92
Starbucks Corp. 34.94 47.68 52.64 56.36 50.29
Interest Coverage, Sector
Travel & Leisure 13.52 14.23 13.03 15.50 11.54
Interest Coverage, Industry
Consumer Services 7.28 8.41 9.20 10.09 10.04

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 5,462 ÷ 311 = 17.56

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Delta Air Lines Inc.’s interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.