Microsoft Excel LibreOffice Calc

Delta Air Lines Inc. (DAL)


Analysis of Solvency Ratios

Low level of difficulty


Solvency Ratios (Summary)

Delta Air Lines Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Debt Ratios
Debt to equity 0.71 0.64 0.60 0.77 1.11
Debt to equity (including operating lease liability) 1.21 0.64 0.60 0.77 1.11
Debt to capital 0.42 0.39 0.37 0.43 0.53
Debt to capital (including operating lease liability) 0.55 0.39 0.37 0.43 0.53
Debt to assets 0.16 0.17 0.14 0.16 0.18
Debt to assets (including operating lease liability) 0.27 0.17 0.14 0.16 0.18
Financial leverage 4.40 3.83 4.17 4.90 6.14
Coverage Ratios
Interest coverage 17.56 15.40 18.10 15.88 2.65
Fixed charge coverage 4.95 4.36 4.93 5.26 1.58

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.
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.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Delta Air Lines Inc.’s financial leverage ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Solvency 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.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Delta Air Lines Inc.’s fixed charge coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 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 (US$ 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 
Solvency Ratio
Debt to equity1 0.71 0.64 0.60 0.77 1.11
Benchmarks
Debt to Equity, Competitors2
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).

1 2018 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 9,771 ÷ 13,687 = 0.71

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.

Debt to Equity (including Operating Lease Liability)

Delta Air Lines Inc., debt to equity (including operating lease liability) 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 (US$ 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 
Current maturities of operating leases 955  —  —  —  — 
Noncurrent operating leases 5,801  —  —  —  — 
Total debt (including operating lease liability) 16,527  8,834  7,332  8,329  9,777 
 
Stockholders’ equity 13,687  13,910  12,287  10,850  8,813 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.21 0.64 0.60 0.77 1.11
Benchmarks
Debt to Equity (including Operating Lease Liability), Sector
Travel & Leisure 3.83 1.93 1.69 1.56 1.04
Debt to Equity (including Operating Lease Liability), Industry
Consumer Services 1.27 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).

1 2018 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 16,527 ÷ 13,687 = 1.21

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.

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 (US$ 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 
Solvency Ratio
Debt to capital1 0.42 0.39 0.37 0.43 0.53
Benchmarks
Debt to Capital, Competitors2
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).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 9,771 ÷ 23,458 = 0.42

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.

Debt to Capital (including Operating Lease Liability)

Delta Air Lines Inc., debt to capital (including operating lease liability) 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 (US$ 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 
Current maturities of operating leases 955  —  —  —  — 
Noncurrent operating leases 5,801  —  —  —  — 
Total debt (including operating lease liability) 16,527  8,834  7,332  8,329  9,777 
Stockholders’ equity 13,687  13,910  12,287  10,850  8,813 
Total capital (including operating lease liability) 30,214  22,744  19,619  19,179  18,590 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.55 0.39 0.37 0.43 0.53
Benchmarks
Debt to Capital (including Operating Lease Liability), Sector
Travel & Leisure 0.79 0.66 0.63 0.61 0.51
Debt to Capital (including Operating Lease Liability), 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).

1 2018 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 16,527 ÷ 30,214 = 0.55

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.

Debt to Assets

Delta Air Lines Inc., debt to assets 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 (US$ 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 
 
Total assets 60,266  53,292  51,261  53,134  54,121 
Solvency Ratio
Debt to assets1 0.16 0.17 0.14 0.16 0.18
Benchmarks
Debt to Assets, Competitors2
Booking Holdings Inc. 0.38 0.37 0.36 0.35 0.26
Marriott International Inc. 0.39 0.34 0.35 0.68 0.55
McDonald’s Corp. 0.95 0.87 0.84 0.64 0.44
Starbucks Corp. 0.39 0.27 0.25 0.19 0.19
Debt to Assets, Sector
Travel & Leisure 0.42 0.40 0.37 0.35 0.29
Debt to Assets, Industry
Consumer Services 0.36 0.33 0.31 0.31 0.27

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).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 9,771 ÷ 60,266 = 0.16

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.

Debt to Assets (including Operating Lease Liability)

Delta Air Lines Inc., debt to assets (including operating lease liability) 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 (US$ 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 
Current maturities of operating leases 955  —  —  —  — 
Noncurrent operating leases 5,801  —  —  —  — 
Total debt (including operating lease liability) 16,527  8,834  7,332  8,329  9,777 
 
Total assets 60,266  53,292  51,261  53,134  54,121 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.27 0.17 0.14 0.16 0.18
Benchmarks
Debt to Assets (including Operating Lease Liability), Sector
Travel & Leisure 0.46 0.40 0.37 0.35 0.29
Debt to Assets (including Operating Lease Liability), Industry
Consumer Services 0.36 0.33 0.31 0.31 0.27

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).

1 2018 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 16,527 ÷ 60,266 = 0.27

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.

Financial Leverage

Delta Air Lines Inc., financial leverage 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 (US$ in millions)
Total assets 60,266  53,292  51,261  53,134  54,121 
Stockholders’ equity 13,687  13,910  12,287  10,850  8,813 
Solvency Ratio
Financial leverage1 4.40 3.83 4.17 4.90 6.14
Benchmarks
Financial Leverage, Competitors2
Booking Holdings Inc. 2.58 2.26 2.02 1.98 1.74
Marriott International Inc. 10.65 6.42 4.51
McDonald’s Corp. 5.35 2.67
Starbucks Corp. 20.66 2.64 2.44 2.14 2.04
Financial Leverage, Sector
Travel & Leisure 8.34 4.85 4.51 4.39 3.63
Financial Leverage, Industry
Consumer Services 3.52 3.21 3.09 3.01 2.74

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).

1 2018 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 60,266 ÷ 13,687 = 4.40

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.’s financial leverage ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

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 (US$ 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 
Solvency Ratio
Interest coverage1 17.56 15.40 18.10 15.88 2.65
Benchmarks
Interest Coverage, Competitors2
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).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,462 ÷ 311 = 17.56

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.’s interest coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Fixed Charge Coverage

Delta Air Lines Inc., fixed charge 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 (US$ 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 
Add: Operating lease cost 994  1,300  1,300  1,200  1,200 
Earnings before fixed charges and tax 6,456  7,397  8,324  8,838  2,922 
 
Interest expense, net 311  396  388  481  650 
Operating lease cost 994  1,300  1,300  1,200  1,200 
Fixed charges 1,305  1,696  1,688  1,681  1,850 
Solvency Ratio
Fixed charge coverage1 4.95 4.36 4.93 5.26 1.58
Benchmarks
Fixed Charge Coverage, Competitors2
Booking Holdings Inc. 12.57 12.77 9.83 13.68 19.63
Marriott International Inc. 5.41 6.88 4.08 5.11 5.22
McDonald’s Corp. 4.52 4.82 3.89 4.05 4.42
Starbucks Corp. 4.62 4.38 4.58 4.56 4.25
Fixed Charge Coverage, Sector
Travel & Leisure 5.27 5.25 4.64 5.01 3.91
Fixed Charge Coverage, Industry
Consumer Services 3.98 4.37 4.61 4.77 4.56

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).

1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,456 ÷ 1,305 = 4.95

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.’s fixed charge coverage ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.