Alaska Air Group Inc (ALK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.75 | 5.32 | 4.75 | 4.69 | 5.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 7.75 | 5.32 | 4.75 | 4.69 | 5.23 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 7.75 + — – —
= 7.75
The cash conversion cycle of Alaska Air Group Inc has shown a fluctuating trend over the past five years. Starting at 5.23 days in December 2020, the cycle decreased slightly to 4.69 days by December 2021 before increasing to 4.75 days in December 2022. Subsequently, there was a further increase to 5.32 days by December 2023, followed by a more significant jump to 7.75 days by December 2024.
Overall, the company's cash conversion cycle indicates that it took a longer time to convert its investments in inventory back into cash in 2024 compared to previous years, potentially indicating inefficiencies in managing working capital. Monitoring and managing this cycle effectively will be crucial for Alaska Air Group Inc to ensure optimal cash flow and liquidity in the future.
Peer comparison
Dec 31, 2024