Analysis of Solvency Ratios
Beginner level
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Delta Air Lines Inc., solvency ratios
Based on: 10-K (filing date: 2020-02-13), 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).
| 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.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| 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.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| 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 2017 to 2018 and from 2018 to 2019. |
| 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.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Delta Air Lines Inc.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| 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.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Delta Air Lines Inc.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
| 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 improved from 2017 to 2018 and from 2018 to 2019. |
| 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 improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Delta Air Lines Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Stockholders’ equity | 15,358 | 13,687 | 13,910 | 12,287 | 10,850 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.73 | 0.71 | 0.64 | 0.60 | 0.77 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Booking Holdings Inc. | 1.45 | 0.98 | 0.85 | 0.73 | 0.70 | |
| McDonald’s Corp. | — | — | — | — | 3.40 | |
| Starbucks Corp. | — | 8.07 | 0.72 | 0.61 | 0.40 | |
| Debt to Equity, Sector | ||||||
| Travel & Leisure | — | 13.30 | 3.20 | 2.72 | 1.50 | |
| Debt to Equity, Industry | ||||||
| Consumer Services | 1.21 | 1.23 | 1.05 | 0.96 | 0.89 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,160 ÷ 15,358 = 0.73
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.’s debt to equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
Delta Air Lines Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Current maturities of operating leases | 801 | 955 | — | — | — | |
| Noncurrent operating leases | 5,294 | 5,801 | — | — | — | |
| Total debt (including operating lease liability) | 17,255 | 16,527 | 8,834 | 7,332 | 8,329 | |
| Stockholders’ equity | 15,358 | 13,687 | 13,910 | 12,287 | 10,850 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.12 | 1.21 | 0.64 | 0.60 | 0.77 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | 1.56 | 0.98 | 0.85 | 0.73 | 0.70 | |
| McDonald’s Corp. | — | — | — | — | 3.40 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Travel & Leisure | — | 13.30 | 3.20 | 2.72 | 1.50 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Services | 1.36 | 1.23 | 1.05 | 0.96 | 0.89 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 17,255 ÷ 15,358 = 1.12
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.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Capital
Delta Air Lines Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Stockholders’ equity | 15,358 | 13,687 | 13,910 | 12,287 | 10,850 | |
| Total capital | 26,518 | 23,458 | 22,744 | 19,619 | 19,179 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.42 | 0.42 | 0.39 | 0.37 | 0.43 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Booking Holdings Inc. | 0.59 | 0.50 | 0.46 | 0.42 | 0.41 | |
| McDonald’s Corp. | 1.32 | 1.25 | 1.12 | 1.09 | 0.77 | |
| Starbucks Corp. | 2.26 | 0.89 | 0.42 | 0.38 | 0.29 | |
| Debt to Capital, Sector | ||||||
| Travel & Leisure | 1.19 | 0.93 | 0.76 | 0.73 | 0.60 | |
| Debt to Capital, Industry | ||||||
| Consumer Services | 0.55 | 0.55 | 0.51 | 0.49 | 0.47 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 11,160 ÷ 26,518 = 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. | Delta Air Lines Inc.’s debt to capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Delta Air Lines Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Current maturities of operating leases | 801 | 955 | — | — | — | |
| Noncurrent operating leases | 5,294 | 5,801 | — | — | — | |
| Total debt (including operating lease liability) | 17,255 | 16,527 | 8,834 | 7,332 | 8,329 | |
| Stockholders’ equity | 15,358 | 13,687 | 13,910 | 12,287 | 10,850 | |
| Total capital (including operating lease liability) | 32,613 | 30,214 | 22,744 | 19,619 | 19,179 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.53 | 0.55 | 0.39 | 0.37 | 0.43 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | 0.61 | 0.50 | 0.46 | 0.42 | 0.41 | |
| McDonald’s Corp. | 1.21 | 1.25 | 1.12 | 1.09 | 0.77 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Travel & Leisure | 1.14 | 0.93 | 0.76 | 0.73 | 0.60 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Services | 0.58 | 0.55 | 0.51 | 0.49 | 0.47 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 17,255 ÷ 32,613 = 0.53
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.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets
Delta Air Lines Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Total assets | 64,532 | 60,266 | 53,292 | 51,261 | 53,134 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.17 | 0.16 | 0.17 | 0.14 | 0.16 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Booking Holdings Inc. | 0.40 | 0.38 | 0.37 | 0.36 | 0.35 | |
| McDonald’s Corp. | 0.72 | 0.95 | 0.87 | 0.84 | 0.64 | |
| Starbucks Corp. | 0.58 | 0.39 | 0.27 | 0.25 | 0.19 | |
| Debt to Assets, Sector | ||||||
| Travel & Leisure | 0.61 | 0.62 | 0.58 | 0.56 | 0.48 | |
| Debt to Assets, Industry | ||||||
| Consumer Services | 0.34 | 0.36 | 0.34 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 11,160 ÷ 64,532 = 0.17
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.’s debt to assets ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Delta Air Lines Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current maturities of debt and finance leases | 2,287 | 1,518 | 2,242 | 1,131 | 1,563 | |
| Debt and finance leases, excluding current maturities | 8,873 | 8,253 | 6,592 | 6,201 | 6,766 | |
| Total debt | 11,160 | 9,771 | 8,834 | 7,332 | 8,329 | |
| Current maturities of operating leases | 801 | 955 | — | — | — | |
| Noncurrent operating leases | 5,294 | 5,801 | — | — | — | |
| Total debt (including operating lease liability) | 17,255 | 16,527 | 8,834 | 7,332 | 8,329 | |
| Total assets | 64,532 | 60,266 | 53,292 | 51,261 | 53,134 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.27 | 0.27 | 0.17 | 0.14 | 0.16 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Booking Holdings Inc. | 0.43 | 0.38 | 0.37 | 0.36 | 0.35 | |
| McDonald’s Corp. | 1.00 | 0.95 | 0.87 | 0.84 | 0.64 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Travel & Leisure | 0.77 | 0.62 | 0.58 | 0.56 | 0.48 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Services | 0.38 | 0.36 | 0.34 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 17,255 ÷ 64,532 = 0.27
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.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Financial Leverage
Delta Air Lines Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 64,532 | 60,266 | 53,292 | 51,261 | 53,134 | |
| Stockholders’ equity | 15,358 | 13,687 | 13,910 | 12,287 | 10,850 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 4.20 | 4.40 | 3.83 | 4.17 | 4.90 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Booking Holdings Inc. | 3.61 | 2.58 | 2.26 | 2.02 | 1.98 | |
| McDonald’s Corp. | — | — | — | — | 5.35 | |
| Starbucks Corp. | — | 20.66 | 2.64 | 2.44 | 2.14 | |
| Financial Leverage, Sector | ||||||
| Travel & Leisure | — | 21.55 | 5.48 | 4.83 | 3.12 | |
| Financial Leverage, Industry | ||||||
| Consumer Services | 3.57 | 3.43 | 3.14 | 3.04 | 2.88 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 64,532 ÷ 15,358 = 4.20
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 increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |
Interest Coverage
Delta Air Lines Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 4,767 | 3,935 | 3,577 | 4,373 | 4,526 | |
| Add: Income tax expense | 1,431 | 1,216 | 2,124 | 2,263 | 2,631 | |
| Add: Interest expense, net | 301 | 311 | 396 | 388 | 481 | |
| Earnings before interest and tax (EBIT) | 6,499 | 5,462 | 6,097 | 7,024 | 7,638 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 21.59 | 17.56 | 15.40 | 18.10 | 15.88 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Booking Holdings Inc. | 23.40 | 18.97 | 18.32 | 14.05 | 20.52 | |
| McDonald’s Corp. | 8.15 | 8.97 | 10.31 | 8.76 | 11.27 | |
| Starbucks Corp. | 14.49 | 34.94 | 47.68 | 52.64 | 56.36 | |
| Interest Coverage, Sector | ||||||
| Travel & Leisure | 11.73 | 13.98 | 14.64 | 12.74 | 16.63 | |
| Interest Coverage, Industry | ||||||
| Consumer Services | 6.67 | 7.13 | 8.26 | 8.95 | 9.85 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,499 ÷ 301 = 21.59
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 improved from 2017 to 2018 and from 2018 to 2019. |
Fixed Charge Coverage
Delta Air Lines Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 4,767 | 3,935 | 3,577 | 4,373 | 4,526 | |
| Add: Income tax expense | 1,431 | 1,216 | 2,124 | 2,263 | 2,631 | |
| Add: Interest expense, net | 301 | 311 | 396 | 388 | 481 | |
| Earnings before interest and tax (EBIT) | 6,499 | 5,462 | 6,097 | 7,024 | 7,638 | |
| Add: Operating lease cost | 1,013 | 994 | 1,300 | 1,300 | 1,200 | |
| Earnings before fixed charges and tax | 7,512 | 6,456 | 7,397 | 8,324 | 8,838 | |
| Interest expense, net | 301 | 311 | 396 | 388 | 481 | |
| Operating lease cost | 1,013 | 994 | 1,300 | 1,300 | 1,200 | |
| Fixed charges | 1,314 | 1,305 | 1,696 | 1,688 | 1,681 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.72 | 4.95 | 4.36 | 4.93 | 5.26 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Booking Holdings Inc. | 14.27 | 12.57 | 12.77 | 9.83 | 13.68 | |
| McDonald’s Corp. | 4.27 | 4.52 | 4.82 | 3.89 | 4.05 | |
| Starbucks Corp. | 3.52 | 4.62 | 4.38 | 4.58 | 4.56 | |
| Fixed Charge Coverage, Sector | ||||||
| Travel & Leisure | 4.94 | 5.35 | 5.44 | 4.57 | 4.89 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Services | 3.71 | 3.86 | 4.27 | 4.48 | 4.63 | |
Based on: 10-K (filing date: 2020-02-13), 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).
1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,512 ÷ 1,314 = 5.72
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 improved from 2017 to 2018 and from 2018 to 2019. |