• Delta Air Lines (NYSE:DAL) delivered impressive earnings per share at $1.85, exceeding estimates, which showcases its robust financial health.
• The airline’s revenue for Q4 approximated $15.56 billion, surpassing expectations due to a noteworthy increase in cargo revenues.
• Financial indicators, including a P/E ratio of 11.52 and a debt-to-equity ratio of 1.11, reveal Delta’s strong market position and financial stability.

On January 10, 2025, Delta Air Lines reported Q4 earnings with an earnings per share (EPS) of $1.85, topping the estimate of $1.74, alongside a revenue of about $15.56 billion, which exceeded the forecast of $14.19 billion.

The Q4 earnings call featured CEO Ed Bastian and key executives, who detailed Delta’s financial outcomes amidst a 3% rise in crude oil prices. Despite this increase, U.S. stocks, particularly within the Nasdaq Composite, faced downward movement.

A 32% year-over-year growth in cargo revenues significantly fueled Delta’s financial success in Q4 2024. This surge in cargo income played a pivotal role in helping Delta exceed earnings expectations, showcasing the company’s strength in this domain. This positive performance indicates a bright horizon for Delta going forward.

Delta’s financial metrics provide essential insights into its overall market value and financial health. With a price-to-earnings (P/E) ratio near 11.52, it reflects that investors are ready to pay $11.52 per dollar of earnings. The price-to-sales ratio, estimated at 0.68, indicates a $0.68 cost for each dollar of sales, while the enterprise value to sales ratio at around 0.91 illustrates the company’s valuation relative to overall revenue.

Delta’s enterprise value to operating cash flow ratio is about 6.97, showcasing its capacity to generate cash flow relative to the business’s valuation. The earnings yield is roughly 8.68%, offering a glimpse into potential returns on investment. Furthermore, a debt-to-equity ratio of approximately 1.11 indicates its reliance on debt for financing, complemented by a current ratio of around 0.37, which underscores its capability to manage short-term dues effectively.