American Airlines Group (AAL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		27.00	24.85	21.97	18.66	11.99
DSO	days	13.52	14.69	16.61	19.56	30.45

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.00
= 13.52

American Airlines Group has shown a consistent improvement in its Days of Sales Outstanding (DSO) ratio over the years based on the provided data. As of December 31, 2020, the company had a DSO of 30.45 days, which indicates that on average, it took the company approximately 30.45 days to convert its accounts receivable into cash.

Over the following years, there was a noticeable decline in the DSO ratio. By December 31, 2024, the DSO had decreased to 13.52 days, showcasing a significant enhancement in the company's ability to collect payments from customers more efficiently.

This trend suggests that American Airlines Group has been effectively managing its accounts receivable and improving its cash flow cycle. A decreasing DSO indicates that the company is collecting payments from customers more promptly, which can have a positive impact on its working capital and overall financial performance.