Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Delta Air Lines Inc., profitability 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).
- Gross Profit Margin
- The gross profit margin remained relatively stable from March 2018 to December 2019, fluctuating slightly between approximately 55.9% and 57.9%. However, beginning in the first quarter of 2020, the margin exhibited a sharp decline, reaching a low of 37.44% by December 2020. A gradual recovery followed in 2021 and into mid-2022, with the margin rising back above 55%, indicating an improvement in cost management or pricing power after the downturn.
- Operating Profit Margin
- The operating profit margin showed a consistent but modest decline between early 2018 and early 2020, moving from 14.04% down to 11.5%. A significant downturn occurred starting in the first quarter of 2020, with operating margins turning negative and reaching a trough of -106.35% by March 2021. This indicates severe operational challenges, likely linked to external adverse conditions during that period. Subsequent quarters reflected a partial recovery, with operating margins improving to positive territory by late 2021 and steadily increasing to approximately 7.67% by mid-2022.
- Net Profit Margin
- Net profit margin trends mirror those of the operating margin, showing stability around 8-10% from 2018 through early 2020. A pronounced decline ensued in 2020, with margins turning deeply negative, reaching nearly -103% in the first quarter of 2021. This suggests that the company experienced significant losses attributable to factors beyond operating income, such as interest or extraordinary items. A gradual easing of losses followed, evolving into slight positive net profit margins by late 2021 and stabilizing around 1.4% in mid-2022.
- Return on Equity (ROE)
- ROE was strong and relatively stable from 2018 through 2019, generally ranging between 25% and 32%. However, it plummeted dramatically in 2020 to deeply negative levels, hitting an extreme low of nearly -2700% in early 2021. This extreme volatility likely reflects a combination of sharp net losses and possible fluctuations in shareholders’ equity. From late 2021 onward, ROE showed a recovery trend, moving into positive territory by mid-2021 and further improving to over 15% by mid-2022, indicating restoration of profitability and equity efficiency.
- Return on Assets (ROA)
- ROA followed a similar pattern to ROE but with lower magnitude fluctuations. It remained positive but moderate from 2018 through early 2020, approximately 5-7.5%. With the onset of adverse conditions in 2020, ROA turned negative, reaching a low near -18% in early 2021, reflecting reduced asset profitability or higher asset costs. The recovery was modest but consistent throughout late 2021 and into 2022, culminating in a positive ROA close to 0.8% by mid-2022, signifying a slow return to asset profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Delta Air Lines Inc., gross profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Gross profit | 7,718) | 4,646) | 5,433) | 5,227) | 3,640) | 1,204) | 1,557) | 1,038) | (322) | 4,127) | 6,600) | 7,397) | 7,378) | 5,701) | 5,895) | 6,770) | 6,782) | 5,549) | ||||||
| Operating revenue | 13,824) | 9,348) | 9,469) | 9,154) | 7,126) | 4,150) | 3,973) | 3,062) | 1,468) | 8,592) | 11,439) | 12,560) | 12,536) | 10,472) | 10,742) | 11,953) | 11,775) | 9,968) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 55.09% | 53.98% | 51.85% | 47.65% | 40.63% | 27.48% | 37.44% | 46.59% | 52.27% | 56.51% | 57.60% | 56.94% | 56.33% | 55.96% | 56.25% | 56.61% | 57.19% | 57.88% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Uber Technologies Inc. | 42.38% | 45.50% | 46.43% | 48.20% | 48.88% | 50.22% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (Operating revenueQ2 2022
+ Operating revenueQ1 2022
+ Operating revenueQ4 2021
+ Operating revenueQ3 2021)
= 100 × (7,718 + 4,646 + 5,433 + 5,227)
÷ (13,824 + 9,348 + 9,469 + 9,154)
= 55.09%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in profitability and revenue performance over the period examined. Overall, the data indicates a cyclical pattern influenced by external factors impacting operating revenue and gross profit values.
- Operating Revenue
- Operating revenue displayed a general upward trend from early 2018 through 2019, rising from approximately 9.97 billion USD to around 11.44 billion USD in the last quarter of 2019. However, there is a sharp decline in the first quarter of 2020 to roughly 8.59 billion USD, followed by a substantial drop in the subsequent quarters, reflecting a significant impact before a gradual recovery begins in 2021. By mid-2022, revenue increased notably to over 13.8 billion USD, surpassing pre-2020 levels, indicating a robust recovery phase.
- Gross Profit
- Gross profit exhibits a similar pattern to operating revenue but with more pronounced fluctuations. It rose steadily through 2018 and 2019, peaking near 7.4 billion USD in the third quarter of 2019, before declining sharply at the start of 2020. Notably, the middle of 2020 shows negative gross profit, indicative of operational challenges and cost pressures exceeding revenue. Recovery commenced in late 2020 and continued through 2021 and into 2022, reaching high levels above 7.7 billion USD by mid-2022, demonstrating significant improvement in operational efficiency or market conditions post-disruption.
- Gross Profit Margin
- The gross profit margin remained relatively stable and strong in the range of approximately 56% from 2018 through 2019, suggesting consistent cost control relative to revenue. Entering 2020, the margin declined sharply, bottoming out near 27.5% early in 2021, reflecting the adverse impact of reduced revenue and increased operational costs. Subsequently, the margin showed continuous improvement throughout 2021 and into 2022, recovering to above 55% by mid-2022, indicative of restored profitability and improved cost management as business conditions normalized.
In summary, the financial data portrays a business that experienced steady growth until early 2020, faced significant operational and financial challenges during 2020, and embarked on a marked recovery trajectory starting from late 2020 through 2022. The restoration of gross profit margin to near pre-2020 levels by mid-2022 underscores a successful adaptation to changed market conditions and an overall strengthening of financial health. The trends suggest resilience and an effective return to profitability following a period of severe disruption.
Operating Profit Margin
Delta Air Lines Inc., operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Operating income (loss) | 1,519) | (783) | 263) | 2,205) | 816) | (1,398) | (858) | (6,386) | (4,815) | (410) | 1,399) | 2,071) | 2,128) | 1,020) | 1,091) | 1,645) | 1,684) | 844) | ||||||
| Operating revenue | 13,824) | 9,348) | 9,469) | 9,154) | 7,126) | 4,150) | 3,973) | 3,062) | 1,468) | 8,592) | 11,439) | 12,560) | 12,536) | 10,472) | 10,742) | 11,953) | 11,775) | 9,968) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 7.67% | 7.13% | 6.31% | 3.13% | -42.74% | -106.35% | -72.94% | -41.58% | -5.15% | 11.50% | 14.08% | 13.63% | 12.87% | 12.10% | 11.85% | 12.21% | 12.92% | 14.04% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 6.47% | 6.54% | 6.98% | 5.76% | 5.27% | 4.24% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -9.07% | -13.04% | -21.97% | -28.04% | -36.73% | -47.47% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 41.59% | 42.90% | 42.83% | 41.98% | 41.35% | 39.80% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | 0.37% | -3.51% | -4.15% | -13.85% | -37.01% | -63.87% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 13.56% | 13.46% | 13.17% | 11.60% | 11.27% | 10.48% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2022
+ Operating income (loss)Q1 2022
+ Operating income (loss)Q4 2021
+ Operating income (loss)Q3 2021)
÷ (Operating revenueQ2 2022
+ Operating revenueQ1 2022
+ Operating revenueQ4 2021
+ Operating revenueQ3 2021)
= 100 × (1,519 + -783 + 263 + 2,205)
÷ (13,824 + 9,348 + 9,469 + 9,154)
= 7.67%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrated notable fluctuations across the periods. From March 2018 through December 2019, it generally remained positive and exhibited growth, peaking in mid-2019. However, from March 2020 onward, there was a sharp decline into negative territory, with significant losses recorded during much of 2020. A gradual recovery became evident starting in mid-2021, with operating income turning positive again and showing improvement in subsequent quarters, although it remained volatile through mid-2022.
- Operating Revenue
- Operating revenue displayed an overall upward trend from early 2018 to the end of 2019, reaching a high point in late 2019. Beginning in the first quarter of 2020, revenue dropped dramatically, coinciding with the negative trend in operating income. This decline persisted through mid-2020, followed by a progressive recovery starting in late 2020 and continuing through mid-2022, though revenue levels in the more recent periods had not fully returned to their pre-2020 peaks.
- Operating Profit Margin
- The operating profit margin showed stability between 11% and 14% from 2018 through 2019, reflecting consistent profitability relative to revenue. Beginning in early 2020, the margin turned negative, reaching its lowest point in late 2020, indicative of substantial losses relative to revenue during this period. From 2021 onward, the margin improved steadily, becoming positive again and trending upwards through mid-2022, suggesting a recovery in operational efficiency and profitability relative to revenue, though levels remained below the earlier historical highs.
Net Profit Margin
Delta Air Lines Inc., net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | 735) | (940) | (407) | 1,212) | 652) | (1,177) | (755) | (5,379) | (5,717) | (534) | 1,099) | 1,495) | 1,443) | 730) | 1,020) | 1,322) | 1,036) | 557) | ||||||
| Operating revenue | 13,824) | 9,348) | 9,469) | 9,154) | 7,126) | 4,150) | 3,973) | 3,062) | 1,468) | 8,592) | 11,439) | 12,560) | 12,536) | 10,472) | 10,742) | 11,953) | 11,775) | 9,968) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 1.44% | 1.47% | 0.94% | -0.28% | -36.37% | -102.96% | -72.45% | -42.88% | -10.74% | 7.76% | 10.14% | 10.12% | 9.88% | 9.14% | 8.86% | 7.94% | 7.77% | 8.39% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 5.49% | 5.88% | 6.23% | 3.85% | 3.28% | 2.50% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -39.39% | -29.52% | -2.84% | -15.87% | -7.97% | -36.50% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 29.23% | 30.06% | 29.92% | 29.19% | 28.60% | 27.02% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | -3.43% | -6.85% | -7.97% | -16.19% | -37.89% | -63.43% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 10.92% | 10.90% | 13.25% | 6.83% | 6.57% | 5.78% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ (Operating revenueQ2 2022
+ Operating revenueQ1 2022
+ Operating revenueQ4 2021
+ Operating revenueQ3 2021)
= 100 × (735 + -940 + -407 + 1,212)
÷ (13,824 + 9,348 + 9,469 + 9,154)
= 1.44%
2 Click competitor name to see calculations.
- Net Income (Loss)
- Over the period examined, net income exhibited significant fluctuations. From early 2018 through 2019, net income remained positive and generally increased, peaking at 1,495 million USD in September 2019. However, starting from March 2020, there was a sharp decline, reflecting substantial net losses coinciding with the onset of the COVID-19 pandemic, with losses reaching their largest magnitude in June 2020 at -5,717 million USD. This loss trend tempered somewhat by the end of 2020, turning less negative but still unfavorable. In 2021, the company experienced a return to positive net income in the middle quarters, with values ranging from 652 million to 1,212 million USD, before another negative result in the final quarter. Early 2022 saw continued volatility with losses followed by a return to profitability of 735 million USD in the second quarter.
- Operating Revenue
- Operating revenue trended upward from 2018 into 2019, reaching a high of 12,560 million USD by September 2019. The first quarter of 2020 marked a notable revenue decline to 8,592 million USD, followed by a dramatic drop in the second quarter to only 1,468 million USD, underscoring the impact of external disruptions likely related to the pandemic. A gradual recovery took place through the remainder of 2020 and into 2021, with revenues steadily increasing each quarter. By mid-2022, operating revenue had nearly returned to or surpassed pre-pandemic levels, with the latest figure at 13,824 million USD, indicating a strong rebound in business activity.
- Net Profit Margin
- The net profit margin remained stable and robust throughout 2018 and 2019, consistently above 7.7% and peaking at just over 10% in late 2019. Beginning in early 2020, the profit margin sharply deteriorated, reflecting significant losses relative to revenues. The margin fell to -72.45% by the third quarter of 2020 and further to -102.96% by the first quarter of 2021, illustrating profound negative profitability during peak pandemic impact. Post this period, a gradual improvement followed through 2021 and into 2022 with the margin improving but still remaining low compared to historical norms, reaching around 1.44% in mid-2022. This indicates that while profitability resumed, it remained at a relatively modest level compared to the pre-pandemic period.
Return on Equity (ROE)
Delta Air Lines Inc., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | 735) | (940) | (407) | 1,212) | 652) | (1,177) | (755) | (5,379) | (5,717) | (534) | 1,099) | 1,495) | 1,443) | 730) | 1,020) | 1,322) | 1,036) | 557) | ||||||
| Stockholders’ equity | 3,811) | 2,991) | 3,887) | 2,606) | 1,281) | 482) | 1,534) | 3,357) | 8,690) | 14,309) | 15,358) | 15,068) | 13,958) | 12,911) | 13,687) | 13,704) | 12,856) | 12,557) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | 15.74% | 17.29% | 7.20% | -2.61% | -519.83% | -2,702.90% | -807.37% | -313.70% | -42.08% | 24.48% | 31.04% | 31.11% | 32.35% | 31.82% | 28.75% | 25.45% | 26.00% | 28.12% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 19.71% | 20.96% | 21.64% | 13.78% | 11.65% | 9.18% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -151.07% | -70.86% | -3.43% | -16.91% | -7.20% | -28.97% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 53.89% | 57.26% | 46.06% | 44.49% | 41.12% | 32.09% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | -30.80% | -54.75% | -39.05% | -59.20% | -112.74% | -129.12% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 67.12% | 69.80% | 90.44% | 53.57% | 56.25% | 72.34% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
ROE = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Stockholders’ equity
= 100 × (735 + -940 + -407 + 1,212)
÷ 3,811 = 15.74%
2 Click competitor name to see calculations.
The financial performance over the analyzed quarters reveals several notable trends and fluctuations in key metrics.
- Net Income (Loss)
- The net income displayed a generally strong performance from early 2018 through the end of 2019, with quarterly profits consistently above $700 million and peaking near $1.5 billion in the third quarter of 2019. However, starting in the first quarter of 2020, the company experienced a sharp reversal, reporting substantial losses that intensified through mid-2020, reaching a maximum loss exceeding $5.7 billion in the second quarter. Subsequent quarters show a gradual recovery trajectory, with losses diminishing through late 2020 and early 2021, eventually turning positive again by mid-2021. Despite intermittent setbacks, by mid-2022, net income again returned to a positive range.
- Stockholders’ Equity
- Stockholders’ equity showed an upward trend from early 2018, rising steadily to approximately $15.4 billion by the end of 2019, indicating growing shareholder value and capital base. However, a significant decline ensued during 2020, likely reflecting the impact of accumulated losses and possibly other equity transactions, hitting a low near $1.5 billion by the end of 2020. In 2021, stockholders’ equity began to recover slowly, increasing quarter over quarter but remaining substantially below pre-2020 levels through mid-2022.
- Return on Equity (ROE)
- The ROE percentages initially indicate strong profitability, maintaining values around and above 25% throughout 2018 and 2019, reflecting efficient utilization of shareholders' equity to generate earnings. This metric dramatically deteriorated starting in early 2020, coinciding with the net income losses, plunging to highly negative figures, reaching an extreme low of around -2700% in the first quarter of 2021. The negative ROE during this period underscores severe earnings distress relative to the equity base. Following this period, ROE gradually improved, moving back toward positive territory in mid-2021 and continuing an upward trend through mid-2022, although still below historical peak levels.
In summary, the data reflect strong financial health before 2020, a severe downturn beginning in early 2020 characterized by heavy net losses and declining equity, followed by a gradual, though incomplete, recovery through 2021 and 2022. The patterns in net income and ROE closely mirror each other, underscoring the company's vulnerability and subsequent resilience, while the equity trends indicate balance sheet erosion and partial restoration over the period.
Return on Assets (ROA)
Delta Air Lines Inc., ROA calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income (loss) | 735) | (940) | (407) | 1,212) | 652) | (1,177) | (755) | (5,379) | (5,717) | (534) | 1,099) | 1,495) | 1,443) | 730) | 1,020) | 1,322) | 1,036) | 557) | ||||||
| Total assets | 74,805) | 73,748) | 72,459) | 72,783) | 75,309) | 73,083) | 71,996) | 79,076) | 72,261) | 68,738) | 64,532) | 63,219) | 62,518) | 61,841) | 60,266) | 55,003) | 55,796) | 54,078) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 0.80% | 0.70% | 0.39% | -0.09% | -8.84% | -17.83% | -17.20% | -13.32% | -5.06% | 5.10% | 7.39% | 7.42% | 7.22% | 6.64% | 6.53% | 6.34% | 5.99% | 6.53% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| FedEx Corp. | 5.84% | 6.21% | 6.32% | 3.66% | 3.02% | 2.30% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Uber Technologies Inc. | -32.45% | -19.26% | -1.28% | -6.39% | -2.82% | -11.37% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Union Pacific Corp. | 10.63% | 10.64% | 10.27% | 9.93% | 9.48% | 8.44% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Airlines Holdings Inc. | -1.73% | -2.87% | -2.88% | -4.64% | -7.78% | -10.90% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| United Parcel Service Inc. | 15.60% | 15.35% | 18.57% | 9.81% | 9.37% | 8.17% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
ROA = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Total assets
= 100 × (735 + -940 + -407 + 1,212)
÷ 74,805 = 0.80%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited a generally positive trend from March 2018 through December 2019, with figures rising from 557 million USD to a peak of 1495 million USD in September 2019 before slightly declining to 1099 million USD by the end of that year. In the first quarter of 2020, there was a marked decline to a net loss of 534 million USD, followed by a significant deterioration throughout the consecutive quarters of 2020, reaching a low of negative 5717 million USD in June 2020. Recovery signs appeared in 2021, where the company returned to profitability in the second and third quarters, registering 652 million USD and 1212 million USD respectively, although this was interrupted by a loss of 407 million USD in the fourth quarter. By mid-2022, net income improved again, posting 735 million USD in June.
- Total Assets
- Total assets trended upward across the observed period, increasing from 54,078 million USD in early 2018 to a peak near 79,076 million USD in September 2020. This period corresponded with both growth and the substantial losses noted during 2020. Following the peak, total assets decreased to a range between approximately 72,000 and 75,000 million USD in 2021 and mid-2022, indicating a stabilization or mild contraction phase after the spike.
- Return on Assets (ROA)
- ROA followed a pattern consistent with net income trends. From 2018 through 2019, ROA maintained a healthy range between approximately 6.5% and 7.4%, reflecting effective asset utilization. However, this metric sharply declined in 2020, turning negative and reaching a nadir of -17.83% by the first quarter of 2021. This negative performance indicated substantial losses relative to asset base during the pandemic impact period. A gradual recovery was evident through 2021 and into 2022, with ROA rising back above zero, though remaining below pre-2020 levels, signaling cautious improvement in asset profitability.
- Overall Observations
- The data reveals significant disruption beginning in early 2020, likely attributable to external economic factors causing sharp income losses and negative profitability despite growing asset size. The company demonstrated resilience with a partial financial recovery starting in late 2020 and continuing through 2022, as indicated by a return to positive net income and improving ROA trends. The asset base experienced growth prior to 2020, peaking during the challenging year, followed by stabilization. The patterns suggest an initial expansion phase, a substantial shock, and an ongoing recovery phase in recent quarters.