Delta Air Lines Inc (DAL)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		19.11	18.26	15.57	11.77	11.58
DSO	days	19.10	19.99	23.44	31.00	31.52

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 19.11
= 19.10

Delta Air Lines Inc's Days Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment from its customers after a sale is made. Based on the data provided, Delta's DSO has shown a decreasing trend over the past five years, indicating an improvement in the company's ability to collect receivables efficiently.

As of December 31, 2020, Delta's DSO stood at 31.52 days. Over the next year, there was a slight decrease in DSO to 31.00 days by December 31, 2021. Subsequently, there was a more significant improvement in collections efficiency, with DSO dropping to 23.44 days by the end of 2022, followed by a further decrease to 19.99 days by the end of 2023, and finally, declining to 19.10 days by the end of 2024.

The decreasing trend in DSO indicates that Delta Air Lines Inc has been successful in managing its accounts receivable effectively, leading to quicker collections and improved cash flow. A lower DSO reflects a faster turnover of accounts receivable and suggests that the company has been successful in ensuring timely payments from customers.

Overall, the decreasing trend in Delta's DSO over the past five years is a positive indicator of the company's efficiency in managing its receivables and maintaining healthy cash flows.