Delta Air Lines Inc (DAL)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 34,642,000 | 34,530,000 | 34,222,000 | 33,566,000 | 33,029,000 | 31,753,000 | 30,922,000 | 30,016,000 | 28,383,000 | 26,019,000 | 23,336,000 | 20,587,000 | 18,735,000 | 17,460,000 | 20,730,000 | 21,524,000 | 22,889,000 | 25,555,000 | 23,946,000 | 25,191,000 |
| Payables | US$ in thousands | 4,650,000 | 4,545,000 | 4,876,000 | 4,541,000 | 4,446,000 | 5,320,000 | 5,114,000 | 4,754,000 | 5,106,000 | 4,958,000 | 5,353,000 | 4,810,000 | 4,240,000 | 4,017,000 | 3,930,000 | 3,432,000 | 2,840,000 | 2,403,000 | 2,332,000 | 3,337,000 |
| Payables turnover | 7.45 | 7.60 | 7.02 | 7.39 | 7.43 | 5.97 | 6.05 | 6.31 | 5.56 | 5.25 | 4.36 | 4.28 | 4.42 | 4.35 | 5.27 | 6.27 | 8.06 | 10.63 | 10.27 | 7.55 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $34,642,000K ÷ $4,650,000K
= 7.45
The payables turnover ratio for Delta Air Lines Inc has shown some fluctuations over the periods provided in the data.
In March 2020, the company had a payables turnover of 7.55, indicating that it was able to convert its accounts payable into cash 7.55 times during that period. The ratio increased to 10.27 by June 2020 and further to 10.63 by September 2020, reflecting a faster rate of payables turnover.
However, from December 2020 to March 2021, there was a decline in the payables turnover ratio, reaching its lowest point of 4.28 in March 2022. This decrease suggests that Delta Air Lines Inc took longer to settle its accounts payable during this period.
Subsequently, the payables turnover ratio experienced some fluctuations but generally stayed within the range of 4.00 to 7.60 from June 2022 to December 2024. This variability may indicate changes in the company's payment practices or relationship with suppliers during these periods.
Overall, a payables turnover ratio below industry peers may indicate inefficiencies in managing payables or potential liquidity issues, while a significantly high ratio may suggest aggressive negotiation with suppliers or potential cash flow challenges. It is essential for Delta Air Lines Inc to monitor its payables turnover ratio consistently to ensure efficient management of its working capital and supplier relationships.
Peer comparison
Dec 31, 2024