American Airlines Group (AAL)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	25.05	25.76	23.81	23.52	23.83	24.08	26.66	26.01	25.30	29.51	30.78	32.00	28.58	36.67	32.78	30.07	32.01	30.97	29.50	28.86
Days of sales outstanding (DSO)	days	14.69	14.54	14.91	14.47	16.61	16.78	17.25	17.06	19.56	21.00	26.07	29.87	29.71	17.43	9.85	8.68	14.21	15.15	16.03	15.59
Number of days of payables	days	24.56	22.22	25.12	25.01	22.47	23.01	32.05	33.08	24.98	29.26	37.37	31.34	21.18	24.19	23.30	27.97	35.66	33.25	36.59	37.06
Cash conversion cycle	days	15.18	18.08	13.60	12.97	17.97	17.85	11.85	10.00	19.89	21.26	19.48	30.53	37.11	29.91	19.33	10.79	10.57	12.88	8.95	7.40

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.05 + 14.69 – 24.56
= 15.18

The cash conversion cycle for American Airlines Group Inc has been relatively stable over the past eight quarters, ranging from 13.89 days to 16.45 days. A lower cash conversion cycle indicates that the company is more efficient in managing its working capital, as it takes less time to convert investments in inventory and accounts receivable into cash from sales.

American Airlines Group Inc's average cash conversion cycle over the eight quarters is approximately 14.96 days, suggesting that on average, it takes the company about 15 days to convert its investments in inventory and accounts receivable into cash from sales.

The trend shows a slight improvement in the efficiency of the company's working capital management in the most recent quarters compared to the previous ones. However, it is important to monitor the cash conversion cycle to ensure that the company continues to effectively manage its working capital to support its operations and financial stability.