Delta Air Lines Inc (DAL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 26.93 | 72.46 |
| Receivables turnover | 19.11 | 18.26 | 15.57 | 11.77 | 11.58 |
| Payables turnover | 7.45 | 7.43 | 5.56 | 4.41 | 9.62 |
| Working capital turnover | — | — | — | — | 10.95 |
Delta Air Lines' inventory turnover has decreased from 72.46 in 2020 to 26.93 in 2021, indicating a slower rate of inventory sales or potential issues with managing inventory levels efficiently.
The receivables turnover for Delta Air Lines has shown an increasing trend from 11.58 in 2020 to 19.11 in 2024, which suggests that the company is collecting its accounts receivable at a faster pace over the years.
On the other hand, the payables turnover ratio has fluctuated, decreasing from 9.62 in 2020 to 4.41 in 2021, and then gradually increasing to 7.45 in 2024. This pattern may indicate changes in payment terms with suppliers or cash management practices.
Regarding the working capital turnover, data is missing for the years after 2020. In 2020, Delta Air Lines had a working capital turnover of 10.95, which reflects how effectively the company utilized its working capital to generate sales revenue during that period.
Overall, these activity ratios provide insights into Delta Air Lines' efficiency in managing inventory, collecting receivables, and handling payables, which are crucial aspects of its operational performance and working capital management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 13.55 | 5.04 |
| Days of sales outstanding (DSO) | days | 19.10 | 19.99 | 23.44 | 31.00 | 31.52 |
| Number of days of payables | days | 48.99 | 49.13 | 65.65 | 82.80 | 37.95 |
The activity ratios for Delta Air Lines Inc indicate how efficiently the company is managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- In 2020, Delta had 5.04 days of inventory on hand, indicating a quick turnover of inventory.
- By 2021, the DOH increased to 13.55 days, suggesting a slower rate of inventory turnover. This may reflect changes in demand or supply chain disruptions.
- For 2022, 2023, and 2024, the data is not available, so we cannot assess the trend in inventory management over these years.
2. Days of Sales Outstanding (DSO):
- Delta had 31.52 days of sales outstanding in 2020 and maintained this level in 2021 at 31.00 days, implying a steady collection period for receivables.
- The DSO decreased to 23.44 days in 2022 and further to 19.99 days in 2023 and 19.10 days in 2024. A decreasing trend in DSO indicates faster collection of receivables, which is positive for cash flow.
3. Number of Days of Payables:
- The number of days of payables for Delta was 37.95 days in 2020.
- The days of payables significantly increased to 82.80 days in 2021, which may indicate delayed payments to suppliers or changes in payment terms.
- It decreased to 65.65 days in 2022, further to 49.13 days in 2023, and slightly to 48.99 days in 2024. The decreasing trend in payables turnover could suggest more timely payments to suppliers.
In summary, Delta Air Lines Inc showed varying trends in activity ratios over the years, with changes in inventory turnover, receivables collection efficiency, and payables management. Further analysis would be needed to understand the impact of these ratios on the company's overall operational efficiency and financial health.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.68 | 1.67 | 1.56 | 1.04 | 0.63 |
| Total asset turnover | 0.82 | 0.78 | 0.68 | 0.39 | 0.22 |
The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets such as property, plant, and equipment. Delta Air Lines Inc's Fixed Asset Turnover ratio has shown improvement over the years, increasing from 0.63 in December 2020 to 1.68 in December 2024. This indicates that Delta Air Lines has been able to generate more sales from its fixed assets as time has progressed.
On the other hand, the Total Asset Turnover ratio reflects the company's ability to generate sales from all its assets. Delta Air Lines Inc's Total Asset Turnover ratio has also depicted a positive trend, rising from 0.22 in December 2020 to 0.82 in December 2024. This signifies that Delta Air Lines has been utilizing its total assets more effectively to generate revenue over the years.
Overall, the improving trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Delta Air Lines Inc has been efficiently utilizing its assets to drive revenue growth and improve its overall business performance.