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Delta Air Lines Altman Z-Score

: 0.53 (As of Today)
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Warning Sign:

Altman Z-score of 0.53 is in distress zone. This implies bankrupcy possibility in the next two years.

Delta Air Lines has a Altman Z-Score of 0.53, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Delta Air Lines's Altman Z-Score or its related term are showing as below:

NYSE:DAL' s Altman Z-Score Range Over the Past 10 Years
Min: -1.33   Med: 0.89   Max: 1.85
Current: 0.53

-1.33
1.85

During the past 13 years, Delta Air Lines's highest Altman Z-Score was 1.85. The lowest was -1.33. And the median was 0.89.


Delta Air Lines Altman Z-Score Historical Data

The historical data trend for Delta Air Lines's Altman Z-Score 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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.79 1.67 1.46 1.57 -0.20

Delta Air Lines Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Altman Z-Score 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 0.03 -0.20 -0.34 0.07 0.56

Competitive Comparison

For the Airlines subindustry, Delta Air Lines's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Transportation industry and Industrials sector, Delta Air Lines's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Delta Air Lines's Altman Z-Score falls into.



Delta Air Lines Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Delta Air Lines's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0474+1.4*0.0036+3.3*0.0146+0.6*0.3281+1.0*0.3353
=0.53

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2021:
Total Assets was $72,783 Mil.
Total Current Assets was $17,471 Mil.
Total Current Liabilities was $20,924 Mil.
Retained Earnings was $259 Mil.
Pre-Tax Income was 1532 + 776 + -1515 + -1108 = $-315 Mil.
Interest Expense was -314 + -338 + -361 + -365 = $-1,378 Mil.
Revenue was 9154 + 7126 + 4150 + 3973 = $24,403 Mil.
Market Cap (Today) was $23,028 Mil.
Total Liabilities was $70,177 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(17471 - 20924)/72783
=-0.0474

X2=Retained Earnings/Total Assets
=259/72783
=0.0036

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-315 - -1378)/72783
=0.0146

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=23027.697/70177
=0.3281

X5=Revenue/Total Assets
=24403/72783
=0.3353

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Delta Air Lines has a Altman Z-Score of 0.53 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Delta Air Lines  (NYSE:DAL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Delta Air Lines Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Delta Air Lines's Altman Z-Score 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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