Alaska Air Group Inc (ALK)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 7.75 | 8.55 | 4.48 | 4.45 | 4.97 | 5.29 | 4.63 | 4.53 | 4.75 | 4.54 | 4.95 | 5.06 | 4.69 | 5.29 | 5.48 | 6.55 | 5.23 | 4.51 | 3.62 | 3.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 7.75 | 8.55 | 4.48 | 4.45 | 4.97 | 5.29 | 4.63 | 4.53 | 4.75 | 4.54 | 4.95 | 5.06 | 4.69 | 5.29 | 5.48 | 6.55 | 5.23 | 4.51 | 3.62 | 3.66 |
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 fluctuated over the past four years. Initially, the company had a relatively low cash conversion cycle, indicating efficient management of its working capital. However, there was a gradual increase in the cycle towards the end of 2020 and through most of 2021, suggesting a possible delay in converting inventory and receivables into cash.
In 2022, there was a slight improvement in the cash conversion cycle, indicating a better management of operating cash flow. However, by the end of 2023 and into 2024, the cycle increased significantly to its highest point, which may raise concerns about the company's ability to efficiently manage its working capital and convert assets into cash within a reasonable time frame.
Overall, the trend in Alaska Air Group Inc's cash conversion cycle shows fluctuations but ultimately indicates a need for continued monitoring and potential improvement in working capital management practices.
Peer comparison
Dec 31, 2024