Stock Analysis on Net

Delta Air Lines Inc. (NYSE:DAL)

This company has been moved to the archive! The financial data has not been updated since July 13, 2022.

Enterprise Value (EV) 

Microsoft Excel

Current Enterprise Value (EV)

Delta Air Lines Inc., current enterprise value calculation

Microsoft Excel
Current share price (P) $29.70
No. shares of common stock outstanding 641,197,918
US$ in millions
Common equity (market value)1 19,044
Total equity 19,044
Add: Current maturities of debt and finance leases (per books) 1,782
Add: Debt and finance leases, excluding current maturities (per books) 25,138
Total equity and debt 45,964
Less: Cash and cash equivalents 7,933
Less: Short-term investments 3,386
Enterprise value (EV) 34,645

Based on: 10-K (reporting date: 2021-12-31).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 29.70 × 641,197,918


Historical Enterprise Value (EV)

Delta Air Lines Inc., EV calculation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Share price1, 2 $42.33 $43.29 $59.13 $51.08 $53.46
No. shares of common stock outstanding1 639,929,760 638,146,665 640,093,995 678,950,098 706,913,358
US$ in millions
Common equity (market value)3 27,088 27,625 37,849 34,681 37,792
Total equity 27,088 27,625 37,849 34,681 37,792
Add: Current maturities of debt and finance leases (book value) 1,782 1,732 2,287 1,518 2,242
Add: Debt and finance leases, excluding current maturities (book value) 25,138 27,425 8,873 8,253 6,592
Total equity and debt 54,008 56,782 49,009 44,452 46,626
Less: Cash and cash equivalents 7,933 8,307 2,882 1,565 1,814
Less: Short-term investments 3,386 5,789 203 825
Enterprise value (EV) 42,689 42,686 46,127 42,684 43,987

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of Delta Air Lines Inc. Annual Report.

3 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 42.33 × 639,929,760


Equity Trends
Both common equity (market value) and total equity exhibit a declining trend from 2017 through 2021. Starting at approximately 37.8 billion USD in 2017, equity decreases slightly in 2018, rebounds marginally in 2019 to levels comparable to 2017, and then experiences a significant drop in 2020 and further decline in 2021, ending near 27.1 billion USD. This indicates a reduction in the company's net asset value as reported by equity holders over the five-year period, with the most notable reductions occurring post-2019.
Total Equity and Debt
The combined measure of total equity and debt shows a different trajectory. It starts at about 46.6 billion USD in 2017, decreases slightly in 2018, then rises substantially in 2019 and peaks in 2020 at roughly 56.8 billion USD. In 2021, it decreases but remains elevated at around 54.0 billion USD compared to the initial years. This pattern suggests increased leverage or capital structure adjustments, particularly during the period marked by significant equity declines.
Enterprise Value (EV)
Enterprise value remains relatively flat throughout the timeframe, fluctuating slightly between a high near 46.1 billion USD in 2019 and lows around 42.7 billion USD in 2020 and 2021. The stability of EV despite falling equity suggests that market perceptions of company value offset declines in book equity through changes in debt or other valuation components.
Overall Insights
The data reflect a period of financial stress or strategic realignment, especially post-2019, highlighted by sharply declining equity levels alongside increased total capital deployed (equity plus debt). The steadiness of enterprise value points to compensatory mechanisms, such as higher debt financing or altered investor valuation. These trends collectively could indicate challenges impacting profitability and net worth, with increased reliance on debt financing to maintain enterprise operations or strategic initiatives.