Alaska Air Group Inc (ALK)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		27.22	32.59	11.31	7.43	27.19
DSO	days	13.41	11.20	32.27	49.13	13.43

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.22
= 13.41

Alaska Air Group Inc.'s days of sales outstanding (DSO) has displayed fluctuations over the past five years. In 2023, the DSO decreased to 13.41 days from 11.20 days in 2022, indicating that the company collected its accounts receivable more quickly compared to the previous year. However, in 2021, the DSO was significantly higher at 32.27 days, signifying a slower collection of receivables. The highest DSO over the period was recorded in 2020 at 49.13 days, reflecting a prolonged time taken to convert sales into cash. In 2019, the DSO was closer to the 2023 figure at 13.43 days.

The downward trend in DSO from 2020 to 2023 suggests an improvement in the efficiency of Alaska Air Group Inc.'s accounts receivable management and cash flow generation. However, monitoring DSO over time remains crucial for assessing the company's ability to collect outstanding receivables promptly and efficiently.