Delta Air Lines Inc (DAL)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,643,000 | 33,030,000 | 28,390,000 | 18,691,000 | 27,317,000 |
| Payables | US$ in thousands | 4,650,000 | 4,446,000 | 5,106,000 | 4,240,000 | 2,840,000 |
| Payables turnover | 7.45 | 7.43 | 5.56 | 4.41 | 9.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $34,643,000K ÷ $4,650,000K
= 7.45
Delta Air Lines Inc's payables turnover has shown fluctuations over the past five years. In December 2020, the payables turnover stood at 9.62, indicating that the company turned over its payables approximately 9.62 times during that year. However, in the subsequent years, there was a noticeable decline in payables turnover, with figures dropping to 4.41 in December 2021, 5.56 in December 2022, and 7.43 in December 2023. This suggests a potential lengthening of the company's payables payment period or a decrease in the frequency of paying off its trade payables.
Nevertheless, there was a slight improvement in December 2024, where the payables turnover increased to 7.45. This indicates that Delta Air Lines Inc was able to enhance its efficiency in managing payables compared to the previous year. Overall, while the company experienced some ups and downs in its payables turnover ratio, it is essential to further assess the reasons behind these fluctuations to understand the company's liquidity management and supplier payment practices effectively.
Peer comparison
Dec 31, 2024