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Delta Air Lines Interest Coverage

: 0.93 (As of Dec. 2021)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Delta Air Lines's Operating Income for the three months ended in Dec. 2021 was $247 Mil. Delta Air Lines's Interest Expense for the three months ended in Dec. 2021 was $-265 Mil. Delta Air Lines's interest coverage for the quarter that ended in Dec. 2021 was 0.93. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Delta Air Lines Inc interest coverage is 1.46, which is low.

The historical rank and industry rank for Delta Air Lines's Interest Coverage or its related term are showing as below:

NYSE:DAL' s Interest Coverage Range Over the Past 10 Years
Min: 1.46   Med: 15.07   Max: 21.99
Current: 1.46

1.46
21.99

NYSE:DAL's Interest Coverage is ranked lower than
87% of the 685 Companies
in the Transportation industry.

( Industry Median: 6.49 vs. NYSE:DAL: 1.46 )

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Delta Air Lines Interest Coverage Historical Data

The historical data trend for Delta Air Lines's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.07 16.93 21.99 - 1.46

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
Interest Coverage 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 - - 2.44 7.13 0.93

Competitive Comparison

For the Airlines subindustry, Delta Air Lines's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Transportation industry and Industrials sector, Delta Air Lines's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Delta Air Lines's Interest Coverage falls into.



Delta Air Lines Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Delta Air Lines's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Delta Air Lines's Interest Expense was $-1,279 Mil. Its Operating Income was $1,867 Mil. And its Long-Term Debt & Capital Lease Obligation was $32,140 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*1867/-1279
=1.46

Delta Air Lines's Interest Coverage for the quarter that ended in Dec. 2021 is calculated as

Here, for the three months ended in Dec. 2021, Delta Air Lines's Interest Expense was $-265 Mil. Its Operating Income was $247 Mil. And its Long-Term Debt & Capital Lease Obligation was $32,140 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2021 )/Interest Expense (Q: Dec. 2021 )
=-1*247/-265
=0.93

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Delta Air Lines  (NYSE:DAL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Delta Air Lines Interest Coverage Related Terms

Thank you for viewing the detailed overview of Delta Air Lines's Interest Coverage 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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