Alaska Air Group Inc (ALK)

Days of sales outstanding (DSO)

		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
Receivables turnover		27.22	30.38	29.48	29.90	32.59	26.32	20.47	10.79	11.43	9.44	6.76	5.27	7.43	15.53	23.84	30.61	27.19	22.86	21.70	23.21
DSO	days	13.41	12.02	12.38	12.21	11.20	13.87	17.83	33.83	31.93	38.68	53.99	69.20	49.13	23.50	15.31	11.92	13.43	15.97	16.82	15.73

December 31, 2023 calculation

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

To analyze Alaska Air Group Inc.'s days of sales outstanding (DSO) over the past eight quarters, we can observe a fluctuating trend in the DSO ratio. DSO represents the average number of days a company takes to collect payment after making a sale.

In Q1 2022, the DSO ratio was notably high at 34.02 days, indicating delayed collections on sales. This may have been a temporary anomaly or could be attributed to inefficient credit and collection policies. Subsequently, the DSO ratio decreased in Q2 2022 to 17.87 days, but remained relatively high compared to the industry average.

In Q3 2022, the DSO ratio increased to 13.89 days, suggesting extended collection periods. However, in Q4 2022, there was a significant improvement as the DSO ratio decreased to 11.20 days, implying a more efficient collection process.

The trend continued into 2023, with DSO ratios in Q1, Q2, and Q3 staying relatively consistent between 12-13 days. This indicates that Alaska Air Group Inc. has been successful in managing its account receivables and collecting payments in a timely manner.

Overall, Alaska Air Group Inc. has shown some variability in its DSO ratio over the past eight quarters, with fluctuations in collection efficiency. It is essential for the company to continue monitoring and optimizing its credit and collection policies to maintain a healthy cash flow and improve overall financial performance.