Microsoft Excel LibreOffice Calc

Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Delta Air Lines Inc., debt and solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Debt to equity 0.64 0.60 0.77 1.11 0.97
Debt to capital 0.39 0.37 0.43 0.53 0.49
Interest coverage 15.40 18.10 15.88 2.65 3.97

Based on: 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), 10-K (filing date: 2014-02-24).

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 improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
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 improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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 improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Current maturities of long-term debt and capital leases 2,242  1,131  1,563  1,216  1,547 
Long-term debt and capital leases, excluding current maturities 6,592  6,201  6,766  8,561  9,795 
Total debt 8,834  7,332  8,329  9,777  11,342 
Stockholders' equity 13,910  12,287  10,850  8,813  11,643 
Ratio
Debt to equity1 0.64 0.60 0.77 1.11 0.97
Benchmarks
Debt to Equity, Competitors
Booking Holdings Inc. 0.85 0.73 0.70 0.45 0.28
Marriott International Inc. 2.21 1.59
McDonald's Corp. 3.40 1.17 0.88
Starbucks Corp. 0.72 0.61 0.40 0.39 0.29
Debt to Equity, Sector
Travel & Leisure 1.93 1.69 1.56 1.04 0.85
Debt to Equity, Industry
Consumer Services 1.08 0.98 0.93 0.76 0.66

Based on: 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), 10-K (filing date: 2014-02-24).

2017 Calculations

1 Debt to equity = Total debt ÷ Stockholders' equity
= 8,834 ÷ 13,910 = 0.64

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 improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Current maturities of long-term debt and capital leases 2,242  1,131  1,563  1,216  1,547 
Long-term debt and capital leases, excluding current maturities 6,592  6,201  6,766  8,561  9,795 
Total debt 8,834  7,332  8,329  9,777  11,342 
Stockholders' equity 13,910  12,287  10,850  8,813  11,643 
Total capital 22,744  19,619  19,179  18,590  22,985 
Ratio
Debt to capital1 0.39 0.37 0.43 0.53 0.49
Benchmarks
Debt to Capital, Competitors
Booking Holdings Inc. 0.46 0.42 0.41 0.31 0.22
Marriott International Inc. 0.69 0.61 7.94 2.39 1.81
McDonald's Corp. 1.12 1.09 0.77 0.54 0.47
Starbucks Corp. 0.42 0.38 0.29 0.28 0.22
Debt to Capital, Sector
Travel & Leisure 0.66 0.63 0.61 0.51 0.46
Debt to Capital, Industry
Consumer Services 0.52 0.50 0.48 0.43 0.40

Based on: 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), 10-K (filing date: 2014-02-24).

2017 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 8,834 ÷ 22,744 = 0.39

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 improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Interest Coverage

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

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income 3,577  4,373  4,526  659  10,540 
Add: Income tax expense 2,124  2,263  2,631  413  (8,013)
Add: Interest expense, net 396  388  481  650  852 
Earnings before interest and tax (EBIT) 6,097  7,024  7,638  1,722  3,379 
Ratio
Interest coverage1 15.40 18.10 15.88 2.65 3.97
Benchmarks
Interest Coverage, Competitors
Booking Holdings Inc. 18.32 14.05 20.52 34.84 28.57
Marriott International Inc. 10.85 6.06 8.51 10.46 8.48
McDonald's Corp. 10.31 8.76 11.27 13.92 16.72
Starbucks Corp. 47.68 52.64 56.36 50.29 -7.18
Interest Coverage, Sector
Travel & Leisure 14.23 13.03 15.50 11.54 9.53
Interest Coverage, Industry
Consumer Services 8.17 8.85 10.01 9.64 10.09

Based on: 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), 10-K (filing date: 2014-02-24).

2017 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 6,097 ÷ 396 = 15.40

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 improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.