Delta Air Lines, Inc. — Earnings Quality Grade F
DAL · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 16 days, change -3 days YoY
AR growth -11.6% vs revenue growth 2.8%
Revenue 2.8%, CFFO 4.0%. Cash follows revenue
Expense Quality
Inventory 12.1% vs COGS 3.4%. Normal
CapEx growth -12.5% vs revenue 2.8%. Normal
SG&A/Gross Profit = 16.2%, excellent (<30%)
Gross margin 24.2%, change -0.4pp. Stable
Cash Flow Quality
CFFO/NI = 1.67. Profits backed by cash
FCF $3.8B, FCF/NI = 0.77
Accruals ratio = -4.1%. Low accruals
Cash $4.3B covers only 21% of debt $20.3B
Balance Sheet Health
Goodwill+Intangibles $15.7B = 75% of equity. Over 50%
Debt/EBITDA = 2.2x. Healthy
Other assets grew 62.8% vs revenue 2.8%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
M-Score = -2.70 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09