Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2007
- Total Asset Turnover since 2007
- Analysis of Revenues
- Analysis of Debt
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Solvency Ratios (Summary)
Delta Air Lines Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Debt to Equity
- The debt to equity ratio remained relatively stable from March 2017 through December 2019, fluctuating between 0.63 and 0.83. A notable sharp increase occurred starting in March 2020, peaking dramatically at 60.26 by March 2021. Following this peak, the ratio decreased significantly but remained elevated compared to pre-pandemic levels, stabilizing around 6.52 to 8.54 in 2022.
- Debt to Equity (Including Operating Lease Liability)
- This ratio followed a similar pattern as the standard debt to equity ratio but started from a higher baseline in December 2018 due to the inclusion of operating lease liabilities (1.21). It also spiked sharply between March 2020 and March 2021, reaching a peak of 73.16, before retreating yet staying above historical norms through 2022.
- Debt to Capital
- The debt to capital ratio held steady around the 0.39 to 0.45 range prior to 2020. From the onset of 2020, this ratio rose gradually, peaking near 0.98 in December 2021. A modest decline followed in 2022, yet the metric remained elevated compared to its pre-pandemic values, suggesting an increase in leverage relative to capital base.
- Debt to Capital (Including Operating Lease Liability)
- Including operating lease liabilities, this ratio was elevated relative to the standard metric starting December 2018 (0.55) and mirrored the upward trend seen in the standard measure beginning in 2020. It peaked near 0.99 in December 2021 before a slight reversal, maintaining a higher leverage level through mid-2022.
- Debt to Assets
- The ratio of debt to assets remained fairly constant at approximately 0.16 to 0.18 from 2017 through early 2020, with a clear increase starting in March 2020 to a peak around 0.44 in September 2020, followed by a steady decline through 2022 to 0.33. This indicates a substantial rise in debt levels relative to asset base during the early pandemic phase, with some deleveraging or asset growth thereafter.
- Debt to Assets (Including Operating Lease Liability)
- When including operating lease liabilities, this measure showed a similar increasing pattern but at higher levels, rising from about 0.27 in December 2018 to a high of 0.52 in September 2020. It then plateaued with minor fluctuations around 0.44 to 0.48 through 2022, suggesting sustained elevated debt impact including lease obligations.
- Financial Leverage
- Financial leverage was relatively steady from 2017 to early 2020 (around 3.7 to 4.8). Beginning March 2020, there was a sharp spike, peaking at an extreme 151.62 by March 2021. This was followed by a significant reduction but remained considerably higher than pre-pandemic figures, ranging from 18.64 to 24.66 through 2022. The extreme spike indicates a temporary substantial increase in leverage or decline in equity base.
- Interest Coverage
- Interest coverage ratios exhibited stable and healthy levels above 14 from March 2017 to December 2019, indicating strong ability to cover interest expenses. However, a drastic deterioration occurred from March 2020 onwards, producing negative coverage ratios through most of 2020 and early 2021, indicating inability to meet interest expenses from earnings. Partial recovery followed, but the ratio remained well below pre-pandemic levels, hovering between 0.77 and 1.86 in 2022, signaling ongoing stress on interest payment capacity.
Debt Ratios
Coverage Ratios
Debt to Equity
Delta Air Lines Inc., debt to equity calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial metrics over the reported quarters reveals distinct trends in the company's capital structure and financial stability.
- Total Debt
- Total debt remained relatively stable from March 2017 through December 2019, fluctuating between approximately $8.8 billion and $11.2 billion. Starting in March 2020, there was a significant increase, peaking around $34.9 billion in September 2020. This increase was followed by a gradual decline through June 2022, with total debt settling near $24.8 billion, indicating elevated leverage compared to pre-2020 levels.
- Stockholders’ Equity
- Stockholders’ equity showed a generally steady pattern from March 2017 to December 2019, remaining within a range of approximately $12.5 billion to $15.4 billion. However, beginning in March 2020, equity declined sharply to a low of roughly $1.5 billion by December 2020. A partial recovery followed, with equity moving upwards to around $3.8 billion by June 2022, yet still significantly below historical levels.
- Debt to Equity Ratio
- The debt to equity ratio exhibited modest fluctuations between 0.63 and 0.83 from March 2017 to December 2019, indicating balanced leverage. Starting March 2020, this ratio escalated substantially, reaching a dramatic high of 60.26 at the end of 2020. Following this peak, the ratio diminished but remained elevated relative to prior periods, ending at approximately 6.52 in June 2022. This suggests a marked increase in financial leverage and potential risk.
Overall, the data highlights a period of significant financial strain beginning in early 2020, likely driven by external factors leading to increased borrowing and a reduction in equity. Although some deleveraging and equity recovery occurred subsequently, the company's financial leverage remains substantially higher compared to pre-2020 levels, indicating altered capital structure and potential impact on financial flexibility.
Debt to Equity (including Operating Lease Liability)
Delta Air Lines Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Current maturities of operating leases | |||||||||||||||||||||||||||||
| Noncurrent operating leases | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals notable trends in the company's leverage and equity position over the examined periods. Total debt, including operating lease liability, initially remained relatively stable from March 2017 through mid-2018, fluctuating between approximately 8,600 and 9,900 million US dollars. However, starting in the second half of 2018, total debt experienced a substantial increase, reaching a peak of over 41,400 million US dollars in September 2020. Following this peak, total debt gradually declined to approximately 32,500 million US dollars by mid-2022.
Stockholders’ equity exhibited a different pattern. From early 2017 to the end of 2019, equity values showed moderate growth, increasing from about 12,945 million US dollars to a peak of roughly 15,358 million US dollars. Beginning in early 2020, there was a sharp and continuous decline in equity, falling to a low point of approximately 482 million US dollars in December 2020. This was followed by a modest recovery through mid-2022, reaching nearly 3,800 million US dollars.
The debt-to-equity ratio illustrates these movements vividly. The ratio remained relatively low and stable, around 0.6 to 0.8, from 2017 through early 2018. A marked increase commenced in late 2018, with the ratio doubling and crossing above 1.0 by the end of that year. In 2020, the ratio surged dramatically to exceedingly high levels, peaking at over 23 in December 2020 and even reaching above 73 in the first quarter of 2021. Subsequently, the ratio declined progressively but remained elevated, fluctuating between approximately 8.5 and 13 through mid-2022.
Overall, the data indicates a period of substantial financial stress or increased leverage beginning in late 2019 and extending through 2020, coinciding with a significant erosion of equity value. The subsequent decrease in both total debt and the debt-to-equity ratio suggests efforts to deleverage and stabilize the company’s financial position in the following quarters. Despite these improvements, leverage remains significantly higher than pre-2020 levels, indicating ongoing elevated financial risk relative to the earlier periods.
Debt to Capital
Delta Air Lines Inc., debt to capital calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The financial data over the observed periods reveals several notable trends concerning the company’s debt levels, total capital, and leverage ratio.
- Total Debt
- Total debt experienced moderate fluctuations from March 2017 through December 2019, generally oscillating between approximately 8,800 and 11,160 million US dollars. Beginning in March 2020, there is a significant and sharp increase in debt, peaking in September 2020 at about 34,870 million US dollars. After this peak, debt gradually declines but remains elevated relative to pre-2020 levels, ending at approximately 24,839 million US dollars by June 2022.
- Total Capital
- Total capital maintained a relatively stable trend from March 2017 to December 2019, hovering between roughly 21,200 million and 26,500 million US dollars. A marked increase is observed starting in March 2020, reaching a peak near 38,227 million US dollars in September 2020. Subsequently, total capital decreases and stabilizes around the 28,000 million US dollar range through mid-2022.
- Debt to Capital Ratio
- The debt to capital ratio remained stable and relatively low, fluctuating between 0.39 and 0.45, from March 2017 to December 2019. From March 2020 onward, there is a pronounced elevation in this ratio, reaching a peak of 0.98 at the end of 2020. This indicates that nearly all of the capital is financed by debt at that time. Although the ratio decreases slightly after 2020, it remains high, ranging between 0.87 and 0.9 through June 2022, indicating sustained higher leverage compared to the pre-2020 period.
In summary, the data shows that the company substantially increased its debt during early 2020, which corresponded with a notable rise in total capital and a significant shift in capital structure toward higher leverage. Despite some reduction in debt and capital levels thereafter, leverage remains markedly elevated compared to the years prior to 2020, potentially reflecting strategic financial decisions or responses to external circumstances during that period.
Debt to Capital (including Operating Lease Liability)
Delta Air Lines Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Current maturities of operating leases | |||||||||||||||||||||||||||||
| Noncurrent operating leases | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows a general upward trend over the examined periods. Beginning at $9,227 million at the end of March 2017, the debt increased moderately through 2018, with a notable jump from $9,291 million in September 2018 to $16,527 million in December 2018. The debt level remained relatively stable around the $16 billion mark through 2019 before sharply increasing in 2020, peaking at $41,440 million in September 2020. After this peak, a declining trend is observed, with debt decreasing to $32,571 million by June 2022. This increase in debt around 2020 coincides with an external impact period requiring significant capital, followed by efforts to reduce leverage into 2022.
- Total Capital (including operating lease liability)
- Total capital remains relatively stable between 2017 and 2019, fluctuating in the range of $22 billion to $32 billion. There is a marked increase beginning in late 2018, with capital rising to over $37 billion in March 2020 and peaking at $44,797 million in September 2020. Similar to total debt, capital then decreases consistently to approximately $36 billion by June 2022. This pattern suggests capital expansion in response to increased financing needs around 2020, with a subsequent normalization phase.
- Debt to Capital Ratio (including operating lease liability)
- The ratio demonstrates a generally increasing trend throughout the timeframe. Starting at 0.42 in March 2017, the ratio slightly declined to 0.39 by the end of 2017 but then increased notably to 0.55 in December 2018. Through 2019, the ratio stayed around the mid-50% range, rising sharply in 2020 to reach a peak of 0.96 in December 2020. From 2021 onwards, the ratio showed a declining trend, falling to around 0.90 by June 2022. This movement reflects a significant rise in financial leverage during the 2020 period, followed by modest deleveraging or capital structure adjustments afterward.
- Overall Analysis
- The data indicates a period of financial strain or strategic borrowing around 2020, likely due to external challenges impacting operating performance or capital requirements. Both total debt and total capital increased markedly during this time, with the debt to capital ratio nearing unity, indicating a high degree of leverage. Following this, a partial recovery is observed through 2021 and mid-2022, with reductions in debt levels and slight improvements in the capital structure ratio. The earlier years show greater stability with relatively balanced debt levels and capital, suggesting a return to more normalized financial conditions after the 2020 disruptions.
Debt to Assets
Delta Air Lines Inc., debt to assets calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's leverage and asset management over the observed periods:
- Total Debt
- Total debt exhibited a relatively stable pattern from the first quarter of 2017 through the end of 2019, fluctuating in a tight range between approximately $8.8 billion and $11.2 billion. However, starting in the first quarter of 2020, there was a marked and sustained increase in total debt, peaking around $34.9 billion in the third quarter of 2020. Subsequently, debt levels decreased gradually but remained significantly elevated compared to pre-2020 levels, hovering between $24.8 billion and $29 billion in 2021 and the first half of 2022.
- Total Assets
- Total assets showed a generally upward trajectory from March 2017 until the third quarter of 2020, rising from about $51.5 billion to nearly $79.1 billion. This growth was interrupted by a decline during the last quarter of 2020 and throughout 2021, with total assets decreasing to the range of approximately $72.7 billion to $75.3 billion. In the first half of 2022, asset levels stabilized slightly above $74 billion.
- Debt to Assets Ratio
- The debt-to-assets ratio remained relatively stable and low, between 0.16 and 0.18, up until the end of 2019. Beginning with the first quarter of 2020, this ratio increased sharply, reflecting the surge in debt amidst the asset base changes. The peak ratio reached 0.44 in the third quarter of 2020. After this peak, a gradual decline ensued over the subsequent two years, with the ratio falling to 0.33 by the second quarter of 2022. Despite this decrease, the ratio remains substantially higher than the levels recorded prior to 2020, indicating a higher leverage position persistently maintained.
Overall, the data indicates that there was a significant expansion in leverage starting in early 2020, accompanied by an increase in the asset base that was not sustained beyond mid-2020. The company appears to be moderating its debt levels and deleveraging gradually, but leverage remains elevated relative to historical patterns observed before 2020. This suggests a strategic shift in capital structure or response to external factors impacting the firm’s financial position during and following 2020.
Debt to Assets (including Operating Lease Liability)
Delta Air Lines Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of debt and finance leases | |||||||||||||||||||||||||||||
| Debt and finance leases, excluding current maturities | |||||||||||||||||||||||||||||
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| Current maturities of operating leases | |||||||||||||||||||||||||||||
| Noncurrent operating leases | |||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals significant trends in the company's debt, assets, and leverage over the observed periods.
- Total Debt (Including Operating Lease Liability)
- The total debt shows a generally increasing trend over time, beginning at approximately $9.2 billion in the first quarter of 2017 and rising intermittently until it peaks during the third quarter of 2020 at about $41.4 billion. Following this peak, there is a gradual decline in debt levels through mid-2022, reducing to approximately $32.6 billion. This sharp increase from early 2020 corresponds with a notable escalation in debt, likely reflecting strategic responses to emerging financial pressures or investment requirements during that period.
- Total Assets
- Total assets steadily increase throughout the observed quarters, starting from roughly $51.5 billion in March 2017 and reaching a high near $79.1 billion in the third quarter of 2020. After this peak, asset levels decrease somewhat but remain relatively stable between $72 billion and $74.8 billion through mid-2022. This general upward trend indicates asset growth, albeit with a moderation following the 2020 peak.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio remains relatively stable around 0.16 to 0.18 from 2017 through mid-2018, then jumps notably starting in late 2018, reaching approximately 0.27 to 0.28 and maintaining this level through 2019. In 2020, the ratio escalates sharply, peaking at about 0.52 in the third quarter, indicating a substantial increase in leverage. Following this, the ratio gradually declines through the end of 2021 into mid-2022, settling near 0.44. This pattern reflects an increased reliance on debt financing relative to asset base during the period around 2020, followed by some deleveraging or asset growth in subsequent quarters.
Overall, the financial data depicts a period of increasing debt and leverage, particularly pronounced during 2020, possibly due to external economic or industry-specific challenges. While total assets also expanded, the rising debt level outpaced asset growth, resulting in heightened leverage ratios. Subsequent quarters show attempts at reducing leverage, either through debt repayment, asset adjustments, or a combination of both, leading to a more balanced capital structure by mid-2022.
Financial Leverage
Delta Air Lines Inc., financial leverage calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
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| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in the company's asset base, equity position, and financial leverage over the observed periods.
- Total Assets
- Total assets exhibit a general upward trajectory from March 2017 to June 2022. Starting at approximately $51.5 billion, assets steadily increase with occasional fluctuations, reaching about $74.8 billion by mid-2022. Notable jumps occur between December 2020 and September 2020, indicating significant asset accumulation despite some periods of minor decline or stagnation. This steady growth suggests ongoing investment and expansion activities.
- Stockholders’ Equity
- Stockholders' equity presents a contrasting evolution. From March 2017 through the end of 2019, equity maintains relatively stable levels, fluctuating modestly between around $12.5 billion and $15.3 billion. However, from early 2020 onwards, there is a sharp and sustained decline, bottoming out at approximately $482 million by March 2021. A slight recovery follows, with equity rising to close to $3.8 billion by June 2022, but still remains significantly lower than pre-2020 levels. This marked equity erosion likely reflects considerable financial stress or significant losses incurred during this timeframe.
- Financial Leverage
- Financial leverage ratios mirror the trends observed in equity, displaying a relatively stable range between 3.7 and 4.8 from 2017 through 2019. Beginning in 2020, leverage escalates dramatically, reaching an extreme peak of 151.62 by March 2021. Subsequent quarters show a gradual reduction in leverage, settling near values of 19.63 by mid-2022, which remains substantially elevated compared to pre-2020 levels. This surge in leverage indicates heavy reliance on debt financing amid diminished equity, signaling heightened financial risk and potential vulnerability in the capital structure during this period.
In summary, the company experienced substantial asset growth over the five-plus years, but this was accompanied by a sharp deterioration in stockholders' equity starting in early 2020. The resulting spike in financial leverage reflects increased borrowing and a weakened equity cushion, possibly correlated with external adverse events or operational challenges affecting financial stability. The modest recovery in equity and partial deleveraging post-2021 suggest initial steps toward restoring financial health, though leverage remains elevated compared to historical norms.
Interest Coverage
Delta Air Lines Inc., interest coverage calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
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| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||
| Add: Interest expense, net | |||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Interest coverage
= (EBITQ2 2022
+ EBITQ1 2022
+ EBITQ4 2021
+ EBITQ3 2021)
÷ (Interest expenseQ2 2022
+ Interest expenseQ1 2022
+ Interest expenseQ4 2021
+ Interest expenseQ3 2021)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The earnings before interest and tax (EBIT) display a volatile pattern over the observed periods. Between March 2017 and December 2019, EBIT fluctuated between approximately 824 million and 1994 million US dollars, with notable peaks in the middle quarters of 2017 and 2019. A significant downturn is evident starting in the first quarter of 2020, with EBIT plunging to negative values, reaching the lowest point at -6820 million in the second quarter of 2020. Some recovery is observed after this trough, yet EBIT remains negative for most of 2020 before approaching positive territory again in late 2021 and early 2022, although the values continue to be inconsistent.
The interest expense, net, remains relatively stable through most of the periods, fluctuating modestly around the 60 to 100 million range from 2017 through 2019. However, beginning in the first quarter of 2020, there is a marked increase in interest expense, peaking at 365 million in the fourth quarter of 2020, before gradually declining but still remaining significantly higher than pre-2020 levels through to mid-2022.
The interest coverage ratio shows strong performance and stability from 2017 to 2019, consistently above 14 and reaching above 21 in late 2019. This indicates a strong ability to cover interest expenses during that period. The coverage ratio dramatically deteriorates in 2020, turning negative and reaching a nadir of approximately -19.54, reflecting EBIT levels insufficient to cover interest expenses, indicative of financial distress. Since then, a slow improvement is seen, with the ratio turning positive again in 2021, though it remains low (below 2) compared to pre-pandemic levels, reflecting ongoing challenges in fully recovering profitability relative to interest obligations.
- EBIT Trends
- Volatile performance pre-2020; severe decline and negative results in 2020; partial recovery into 2021-2022 but inconsistent.
- Interest Expense Trends
- Relatively stable and moderate pre-2020; sharp increase in 2020; gradual decrease post-peak but remaining elevated versus historical levels.
- Interest Coverage Ratio Trends
- Strong and stable above 14 from 2017 to 2019; severe deterioration to negative values in 2020; gradual recovery in 2021-2022 but remaining below pre-2020 norms.