Delta Air Lines Inc (DAL)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		15.52	18.26	17.53	17.54	16.41	15.57	14.66	13.05	11.07	11.81	10.46	7.51	6.23	11.58	15.97	24.52	19.69	16.39	16.25	16.01
DSO	days	23.51	19.99	20.82	20.81	22.24	23.44	24.89	27.96	32.97	30.91	34.88	48.61	58.60	31.52	22.86	14.89	18.53	22.27	22.46	22.79

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.52
= 23.51

Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect payment on its sales. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally seen as a positive indicator of efficiency.

Analyzing the DSO trend for Delta Air Lines Inc over the past few quarters, we observe fluctuations in the metric. In the most recent quarter ending March 31, 2024, the DSO stood at 23.51 days, a slight increase from the previous quarter's 19.99 days. This indicates a somewhat slower collection of receivables compared to the previous quarter.

Looking back over the past year, the DSO has shown variability, with peaks observed in the quarters ending December 31, 2022, and March 31, 2021, at 58.60 days and 58.27 days, respectively. Conversely, the lowest DSO was recorded in the quarter ending June 30, 2020, at 14.89 days.

Overall, the trend in DSO for Delta Air Lines Inc suggests some inconsistency in the collection of sales revenues. Management may need to focus on optimizing the accounts receivable process to ensure timely collections and improve the company's overall liquidity position. Further monitoring of DSO and implementing strategies to reduce the collection period could enhance the company's financial efficiency and cash flow management.