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 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).

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 equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Delta Air Lines Inc.’s debt to equity (including operating lease liability) 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.
Debt to capital (including operating lease liability) ratio 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.’s debt to capital (including operating lease liability) ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Delta Air Lines Inc.’s debt to assets ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Delta Air Lines Inc.’s debt to assets (including operating lease liability) ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Delta Air Lines Inc.’s financial leverage ratio improved from 2016 to 2017 but then deteriorated significantly 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.
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 (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 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 (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 
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 
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).

2018 Calculations

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

Ratio Description The company
Debt to equity (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Delta Air Lines Inc.’s debt to equity (including operating lease liability) 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.

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 (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 
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 
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).

2018 Calculations

1 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

Ratio Description The company
Debt to capital (including operating lease liability) ratio 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.’s debt to capital (including operating lease liability) ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

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 (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 
 
Total assets 60,266  53,292  51,261  53,134  54,121 
Ratio
Debt to assets1 0.16 0.17 0.14 0.16 0.18
Benchmarks
Debt to Assets, Competitors
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).

2018 Calculations

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

Ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Delta Air Lines Inc.’s debt to assets ratio deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

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 (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 
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 
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).

2018 Calculations

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

Ratio Description The company
Debt to assets (including operating lease liability) ratio A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Delta Air Lines Inc.’s debt to assets (including operating lease liability) ratio deteriorated from 2016 to 2017 and from 2017 to 2018.

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 (USD $ 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 
Ratio
Financial leverage1 4.40 3.83 4.17 4.90 6.14
Benchmarks
Financial Leverage, Competitors
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).

2018 Calculations

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

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 improved from 2016 to 2017 but then deteriorated significantly 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.

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 (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 
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 
Ratio
Fixed charge coverage1 4.95 4.36 4.93 5.26 1.58
Benchmarks
Fixed Charge Coverage, Competitors
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).

2018 Calculations

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

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.