Delta Air Lines Inc (DAL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 25.14 | 19.94 | 26.93 | 72.46 | 35.19 |
| Receivables turnover | 18.26 | 15.57 | 11.77 | 11.58 | 16.37 |
| Payables turnover | 7.43 | 5.56 | 4.41 | 9.62 | 7.86 |
| Working capital turnover | — | — | — | 10.95 | — |
Inventory turnover is calculated by dividing the cost of goods sold by the average inventory. The data provided for Delta Air Lines, Inc. shows that the inventory turnover ratio is consistently at 0.00 for the past five years. This implies that Delta Air Lines is not effectively managing its inventory or has a low demand for its products, which may lead to potential issues like obsolete inventory or overstocking.
Receivables turnover, on the other hand, measures how efficiently a company collects its accounts receivables. The data reveals an improving trend in receivables turnover for Delta Air Lines over the past five years, indicating that the company is collecting its receivables at a faster rate. This signifies effective credit management and timely collection of outstanding dues from customers.
Payables turnover, which measures how quickly a company pays its suppliers, is reported as 0.00 for each year, suggesting that the company might not have significant payables or might be paying its suppliers infrequently. This could indicate potential liquidity issues or strong bargaining power with suppliers.
Working capital turnover is calculated by dividing revenue by the average working capital. However, data for this ratio is missing for the years prior to 2020. In 2020, the working capital turnover ratio is 11.57, implying that Delta Air Lines generated $11.57 in revenue for every dollar of working capital invested. This indicates efficient utilization of working capital to generate sales.
In conclusion, while Delta Air Lines shows improvement in receivables turnover and decent working capital turnover, the consistent 0.00 ratios for inventory turnover and payables turnover indicate areas where the company may need to focus on improving efficiency and liquidity management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.52 | 18.31 | 13.55 | 5.04 | 10.37 |
| Days of sales outstanding (DSO) | days | 19.99 | 23.44 | 31.00 | 31.52 | 22.30 |
| Number of days of payables | days | 49.13 | 65.65 | 82.80 | 37.95 | 46.41 |
The Days of Sales Outstanding (DSO) for Delta Air Lines, Inc. has shown a fluctuating trend over the past five years. In 2023, the DSO stood at 19.68 days, which was an improvement compared to 2022 when it was 22.92 days. This indicates that Delta Air Lines is collecting its receivables more efficiently in 2023. However, compared to 2019 when the DSO was 22.16 days, there has been an increase in efficiency in collecting receivables.
Unfortunately, there is no data available to calculate the Days of Inventory on Hand (DOH) and the Number of Days of Payables, so we cannot provide a comprehensive analysis on the efficiency of Delta Air Lines in managing inventory and paying its suppliers.
See also:
Delta Air Lines Inc Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.67 | 1.56 | 1.04 | 0.63 | 1.54 |
| Total asset turnover | 0.78 | 0.68 | 0.39 | 0.22 | 0.72 |
The long-term activity ratios for Delta Air Lines, Inc. reveal its efficiency in managing fixed and total assets over the past five years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how well the company utilizes its fixed assets to generate sales.
- Delta's fixed asset turnover has shown fluctuations over the years, with a significant increase from 2020 to 2021, followed by a decrease in 2022 and then a rise in 2023.
- The ratio peaked in 2023 at 1.64, suggesting that Delta generated $1.64 in sales for every dollar invested in fixed assets, indicating improved efficiency in utilizing its long-term assets.
2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets.
- Delta's total asset turnover has also shown variability, with a notable increase from 2020 to 2021, followed by a decline in 2022 and then a slight uptick in 2023.
- The ratio hit its highest level in 2021 at 0.41, indicating that Delta generated $0.41 in sales for every dollar of total assets, reflecting improved efficiency in utilizing all assets to generate revenue.
Overall, Delta Air Lines, Inc. has demonstrated varying levels of efficiency in utilizing its long-term assets over the past five years, with improvements shown in both fixed asset turnover and total asset turnover ratios. These ratios suggest that Delta has been effectively leveraging its long-term assets to drive sales growth and improve operational performance.