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Delta Air Lines Owner Earnings per Share (TTM)

: 1.11 (As of Dec. 2021)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Delta Air Lines's Owner Earnings per Share (TTM) ended in Dec. 2021 was $1.11. It's Price-to-Owner-Earnings ratio for today is 34.1.


The historical rank and industry rank for Delta Air Lines's Owner Earnings per Share (TTM) or its related term are showing as below:

NYSE:DAL' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 2.58   Med: 25.6   Max: 5736.25
Current: 34.28

2.58
5736.25

During the past 13 years, the highest Price-to-Owner-Earnings ratio of Delta Air Lines was 5736.25. The lowest was 2.58. And the median was 25.60.


NYSE:DAL's Price-to-Owner-Earnings is ranked lower than
75% of the 493 Companies
in the Transportation industry.

( Industry Median: 15.71 vs. NYSE:DAL: 34.28 )

Delta Air Lines's Earnings per Share (Diluted) for the three months ended in Dec. 2021 was $-0.64. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2021 was $0.42. It's PE Ratio ratio for today is 90.12.

Delta Air Lines's EPS without NRI for the three months ended in Dec. 2021 was $-0.64. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2021 was $0.42. It's PE Ratio without NRI ratio for today is 90.12.


Delta Air Lines Owner Earnings per Share (TTM) Historical Data

The historical data trend for Delta Air Lines's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Delta Air Lines Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.03 1.61 2.08 -24.83 1.11

Delta Air Lines Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -24.83 -24.10 -11.14 -0.93 1.11

Competitive Comparison

For the Airlines subindustry, Delta Air Lines's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Delta Air Lines Owner Earnings per Share (TTM) Distribution

For the Transportation industry and Industrials sector, Delta Air Lines's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Delta Air Lines's Owner Earnings per Share (TTM) falls into.



Delta Air Lines Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Delta Air Lines's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 279
Depreciation, Depletion and Amortization 1,497
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 3,449
Change In Working Capital 2,377
Shares Outstanding (Diluted Average) 637

1. Start with "Net Income" from income statement. Delta Air Lines's Net Income for the trailing twelve months (TTM) ended in Dec. 2021 was $279 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Delta Air Lines's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2021 was $1,497 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Delta Air Lines's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2021 was $0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $3,449 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Delta Air Lines's 5-Year Average Maintenance Capital Expenditure = $3,449 Mil

5. "Change In Working Capital" is from cashflow statement. Delta Air Lines's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2021 was $2,377 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Delta Air Lines's Shares Outstanding (Diluted Average) for the months ended in Dec. 2021 was 637.000 Mil.

Delta Air Lines's Onwer Earnings Per Share for Dec. 2021 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 279 +1497+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-3448.6453613909+2377)/637.000
=1.11

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=37.85/1.11
=34.1

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Delta Air Lines Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Delta Air Lines's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Delta Air Lines Business Description

Delta Air Lines logo
Industry
Industrials » Transportation NAICS : 481111 SIC : 4512
Address
Post Office Box 20706, Atlanta, GA, USA, 30320-6001
Atlanta-based Delta Air Lines is one of the world's largest airlines, with a network of over 300 destinations in more than 50 countries. Delta operates a hub-and-spoke system network, where it gathers and distributes passengers across the globe through key locations in Atlanta, New York, Salt Lake City, Detroit, Seattle, and Minneapolis-St. Paul. Delta's sale of frequent flier miles, particularly to American Express, is a major driver of the firm's profits.
Executives
Jacobson Paul A officer: EVP & CFO C/O DELTA AIR LINES, INC., DEPT. 981 P.O. BOX 20574 ATLANTA GA 30320
Carter Ashton B director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Mattson George N director C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Jackson Jeanne P director 537 NEWPORT CENTER DRIVE #306 NEWPORT BEACH CA 92660
Waller Kathy N director THE COCA-COLA COMPANY ONE COCA-COLA PLAZA ATLANTA GA 30313
Taylor David S director THE PROCTER & GAMBLE COMPANY ONE PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Rial Sergio director CARGILL, INCORPORATED 15615 MCGINTY ROAD WEST WAYZATA MN 55391
Huerta Michael P director 1800 M STREET NW SUITE 800 WASHINGTON DC 20036
Dewalt David G director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DEWALT DAVID G a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Blake Francis S director 2455 PACES FERRY RD ATLANTA GA 30339
Easter William H Iii director 370 17TH ST STE 2500 DENVER CO 80202
Samant Rahul D officer: EVP & Chief Info Officer C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Carroll William C officer: SVP, Finance & Controller C/O DELTA AIR LINES, INC. P.O. BOX 20574, DEPT. 981 ATLANTA GA 30320

Delta Air Lines Headlines

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