Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Delta Air Lines Inc., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Delta Air Lines Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Delta Air Lines Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Delta Air Lines Inc. debt to capital ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Delta Air Lines Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Delta Air Lines Inc. debt to assets ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Delta Air Lines Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Delta Air Lines Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Delta Air Lines Inc. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Delta Air Lines Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Equity
Delta Air Lines Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Stockholders’ equity | 3,887 | 1,534 | 15,358 | 13,687 | 13,910 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 6.93 | 19.01 | 0.73 | 0.71 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| American Airlines Group Inc. | — | — | — | — | 6.38 | |
| CSX Corp. | 1.21 | 1.28 | 1.37 | 1.17 | 0.80 | |
| FedEx Corp. | 0.86 | 1.20 | 0.99 | 0.85 | 0.93 | |
| Union Pacific Corp. | 2.10 | 1.58 | 1.39 | 1.10 | 0.68 | |
| United Airlines Holdings Inc. | 6.69 | 4.56 | 1.29 | 1.47 | 1.63 | |
| United Parcel Service Inc. | 1.54 | 37.53 | 7.73 | 7.53 | 24.29 | |
| Debt to Equity, Sector | ||||||
| Transportation | 2.77 | 3.61 | 1.73 | 1.59 | 1.40 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.80 | 2.37 | 2.07 | 1.98 | 1.72 | |
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).
1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 26,920 ÷ 3,887 = 6.93
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Delta Air Lines Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Equity (including Operating Lease Liability)
Delta Air Lines Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Current maturities of operating leases | 703 | 678 | 801 | 955 | — | |
| Noncurrent operating leases | 7,056 | 5,713 | 5,294 | 5,801 | — | |
| Total debt (including operating lease liability) | 34,679 | 35,548 | 17,255 | 16,527 | 8,834 | |
| Stockholders’ equity | 3,887 | 1,534 | 15,358 | 13,687 | 13,910 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 8.92 | 23.17 | 1.12 | 1.21 | 0.64 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| American Airlines Group Inc. | — | — | — | — | 6.38 | |
| CSX Corp. | 1.25 | 1.31 | 1.42 | 1.17 | 0.80 | |
| FedEx Corp. | 1.51 | 1.97 | 0.99 | 0.85 | 0.93 | |
| Union Pacific Corp. | 2.22 | 1.67 | 1.49 | 1.10 | 0.68 | |
| United Airlines Holdings Inc. | 7.83 | 5.50 | 1.77 | 1.47 | 1.63 | |
| United Parcel Service Inc. | 1.79 | 42.24 | 8.62 | 7.53 | 24.29 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Transportation | 3.41 | 4.41 | 2.07 | 1.80 | 1.40 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 2.05 | 2.64 | 2.27 | 2.07 | 1.72 | |
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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 34,679 ÷ 3,887 = 8.92
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Delta Air Lines Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Capital
Delta Air Lines Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Stockholders’ equity | 3,887 | 1,534 | 15,358 | 13,687 | 13,910 | |
| Total capital | 30,807 | 30,691 | 26,518 | 23,458 | 22,744 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.87 | 0.95 | 0.42 | 0.42 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| American Airlines Group Inc. | 1.24 | 1.27 | 1.00 | 1.01 | 0.86 | |
| CSX Corp. | 0.55 | 0.56 | 0.58 | 0.54 | 0.45 | |
| FedEx Corp. | 0.46 | 0.55 | 0.50 | 0.46 | 0.48 | |
| Union Pacific Corp. | 0.68 | 0.61 | 0.58 | 0.52 | 0.41 | |
| United Airlines Holdings Inc. | 0.87 | 0.82 | 0.56 | 0.60 | 0.62 | |
| United Parcel Service Inc. | 0.61 | 0.97 | 0.89 | 0.88 | 0.96 | |
| Debt to Capital, Sector | ||||||
| Transportation | 0.73 | 0.78 | 0.63 | 0.61 | 0.58 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.64 | 0.70 | 0.67 | 0.66 | 0.63 | |
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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 26,920 ÷ 30,807 = 0.87
2 Click competitor name to see calculations.
| Solvency 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. debt to capital ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Delta Air Lines Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Current maturities of operating leases | 703 | 678 | 801 | 955 | — | |
| Noncurrent operating leases | 7,056 | 5,713 | 5,294 | 5,801 | — | |
| Total debt (including operating lease liability) | 34,679 | 35,548 | 17,255 | 16,527 | 8,834 | |
| Stockholders’ equity | 3,887 | 1,534 | 15,358 | 13,687 | 13,910 | |
| Total capital (including operating lease liability) | 38,566 | 37,082 | 32,613 | 30,214 | 22,744 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.90 | 0.96 | 0.53 | 0.55 | 0.39 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| American Airlines Group Inc. | 1.19 | 1.20 | 1.00 | 1.00 | 0.86 | |
| CSX Corp. | 0.56 | 0.57 | 0.59 | 0.54 | 0.45 | |
| FedEx Corp. | 0.60 | 0.66 | 0.50 | 0.46 | 0.48 | |
| Union Pacific Corp. | 0.69 | 0.63 | 0.60 | 0.52 | 0.41 | |
| United Airlines Holdings Inc. | 0.89 | 0.85 | 0.64 | 0.60 | 0.62 | |
| United Parcel Service Inc. | 0.64 | 0.98 | 0.90 | 0.88 | 0.96 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.77 | 0.82 | 0.67 | 0.64 | 0.58 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.67 | 0.73 | 0.69 | 0.67 | 0.63 | |
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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 34,679 ÷ 38,566 = 0.90
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Delta Air Lines Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Assets
Delta Air Lines Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Total assets | 72,459 | 71,996 | 64,532 | 60,266 | 53,292 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.37 | 0.40 | 0.17 | 0.16 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| American Airlines Group Inc. | 0.57 | 0.53 | 0.41 | 0.40 | 0.49 | |
| CSX Corp. | 0.40 | 0.42 | 0.42 | 0.40 | 0.33 | |
| FedEx Corp. | 0.25 | 0.30 | 0.32 | 0.32 | 0.31 | |
| Union Pacific Corp. | 0.47 | 0.43 | 0.41 | 0.38 | 0.29 | |
| United Airlines Holdings Inc. | 0.49 | 0.46 | 0.28 | 0.33 | 0.34 | |
| United Parcel Service Inc. | 0.32 | 0.40 | 0.44 | 0.45 | 0.53 | |
| Debt to Assets, Sector | ||||||
| Transportation | 0.40 | 0.41 | 0.35 | 0.34 | 0.35 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.33 | 0.35 | 0.33 | 0.33 | 0.33 | |
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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 26,920 ÷ 72,459 = 0.37
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Delta Air Lines Inc. debt to assets ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Delta Air Lines Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 1,782 | 1,732 | 2,287 | 1,518 | 2,242 | |
| Debt and finance leases, excluding current maturities | 25,138 | 27,425 | 8,873 | 8,253 | 6,592 | |
| Total debt | 26,920 | 29,157 | 11,160 | 9,771 | 8,834 | |
| Current maturities of operating leases | 703 | 678 | 801 | 955 | — | |
| Noncurrent operating leases | 7,056 | 5,713 | 5,294 | 5,801 | — | |
| Total debt (including operating lease liability) | 34,679 | 35,548 | 17,255 | 16,527 | 8,834 | |
| Total assets | 72,459 | 71,996 | 64,532 | 60,266 | 53,292 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.48 | 0.49 | 0.27 | 0.27 | 0.17 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| American Airlines Group Inc. | 0.69 | 0.66 | 0.56 | 0.56 | 0.49 | |
| CSX Corp. | 0.42 | 0.43 | 0.44 | 0.40 | 0.33 | |
| FedEx Corp. | 0.44 | 0.49 | 0.32 | 0.32 | 0.31 | |
| Union Pacific Corp. | 0.50 | 0.45 | 0.44 | 0.38 | 0.29 | |
| United Airlines Holdings Inc. | 0.58 | 0.55 | 0.39 | 0.33 | 0.34 | |
| United Parcel Service Inc. | 0.37 | 0.44 | 0.49 | 0.45 | 0.53 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Transportation | 0.50 | 0.51 | 0.41 | 0.39 | 0.35 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.37 | 0.39 | 0.36 | 0.34 | 0.33 | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 34,679 ÷ 72,459 = 0.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Delta Air Lines Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Financial Leverage
Delta Air Lines Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 72,459 | 71,996 | 64,532 | 60,266 | 53,292 | |
| Stockholders’ equity | 3,887 | 1,534 | 15,358 | 13,687 | 13,910 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 18.64 | 46.93 | 4.20 | 4.40 | 3.83 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| American Airlines Group Inc. | — | — | — | — | 13.09 | |
| CSX Corp. | 3.00 | 3.04 | 3.23 | 2.92 | 2.43 | |
| FedEx Corp. | 3.43 | 4.02 | 3.06 | 2.70 | 3.02 | |
| Union Pacific Corp. | 4.49 | 3.68 | 3.40 | 2.90 | 2.33 | |
| United Airlines Holdings Inc. | 13.56 | 9.99 | 4.56 | 4.48 | 4.81 | |
| United Parcel Service Inc. | 4.87 | 94.99 | 17.71 | 16.56 | 45.40 | |
| Financial Leverage, Sector | ||||||
| Transportation | 6.85 | 8.70 | 5.01 | 4.61 | 4.02 | |
| Financial Leverage, Industry | ||||||
| Industrials | 5.47 | 6.71 | 6.35 | 6.06 | 5.22 | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 72,459 ÷ 3,887 = 18.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Delta Air Lines Inc. financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |
Interest Coverage
Delta Air Lines Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 280 | (12,385) | 4,767 | 3,935 | 3,577 | |
| Add: Income tax expense | 118 | (3,202) | 1,431 | 1,216 | 2,124 | |
| Add: Interest expense, net | 1,279 | 929 | 301 | 311 | 396 | |
| Earnings before interest and tax (EBIT) | 1,677 | (14,658) | 6,499 | 5,462 | 6,097 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 1.31 | -15.78 | 21.59 | 17.56 | 15.40 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| American Airlines Group Inc. | -0.42 | -8.33 | 3.06 | 2.78 | 3.93 | |
| CSX Corp. | 7.86 | 5.81 | 6.86 | 7.74 | 6.75 | |
| FedEx Corp. | 9.42 | 3.48 | 2.11 | 8.80 | 9.94 | |
| Union Pacific Corp. | 8.33 | 7.12 | 8.38 | 9.90 | 11.61 | |
| United Airlines Holdings Inc. | -0.62 | -7.89 | 7.06 | 5.03 | 6.36 | |
| United Parcel Service Inc. | 24.91 | 3.63 | 9.66 | 10.95 | 16.78 | |
| Interest Coverage, Sector | ||||||
| Transportation | 4.99 | -2.39 | 7.06 | 7.83 | 9.09 | |
| Interest Coverage, Industry | ||||||
| Industrials | 4.34 | -0.03 | 5.57 | 5.11 | 5.97 | |
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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 1,677 ÷ 1,279 = 1.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Delta Air Lines Inc. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Fixed Charge Coverage
Delta Air Lines Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) | 280 | (12,385) | 4,767 | 3,935 | 3,577 | |
| Add: Income tax expense | 118 | (3,202) | 1,431 | 1,216 | 2,124 | |
| Add: Interest expense, net | 1,279 | 929 | 301 | 311 | 396 | |
| Earnings before interest and tax (EBIT) | 1,677 | (14,658) | 6,499 | 5,462 | 6,097 | |
| Add: Operating lease cost | 863 | 1,019 | 1,013 | 994 | 1,300 | |
| Earnings before fixed charges and tax | 2,540 | (13,639) | 7,512 | 6,456 | 7,397 | |
| Interest expense, net | 1,279 | 929 | 301 | 311 | 396 | |
| Operating lease cost | 863 | 1,019 | 1,013 | 994 | 1,300 | |
| Fixed charges | 2,142 | 1,948 | 1,314 | 1,305 | 1,696 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 1.19 | -7.00 | 5.72 | 4.95 | 4.36 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| American Airlines Group Inc. | 0.33 | -2.60 | 1.72 | 1.64 | 1.80 | |
| CSX Corp. | 7.10 | 5.34 | 6.26 | 7.10 | 6.04 | |
| FedEx Corp. | 2.83 | 1.50 | 1.19 | 2.25 | 2.38 | |
| Union Pacific Corp. | 6.81 | 5.79 | 6.62 | 7.11 | 7.37 | |
| United Airlines Holdings Inc. | -0.01 | -3.58 | 3.32 | 2.08 | 2.29 | |
| United Parcel Service Inc. | 12.66 | 2.31 | 5.36 | 4.85 | 6.69 | |
| Fixed Charge Coverage, Sector | ||||||
| Transportation | 3.02 | -0.54 | 3.35 | 3.34 | 3.40 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 2.95 | 0.39 | 3.42 | 3.02 | 3.28 | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,540 ÷ 2,142 = 1.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Delta Air Lines Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |