Delta Air Lines Inc (DAL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	27.00	27.24	32.34	47.10	60.71	72.39	67.84	57.38
Receivables turnover	19.04	16.86	15.60	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
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	10.95	4.52	—	—

Delta Air Lines Inc's inventory turnover ratio has shown fluctuations over the period, starting at a high of 72.39 in September 2020 and declining to 27.00 by December 2021. This indicates that the company's ability to sell its inventory efficiently decreased significantly over this period.

The receivables turnover ratio also varied, with a peak of 19.69 in March 2020 and fluctuating before increasing consistently to reach 19.04 by December 2024. This suggests that Delta Air Lines improved its efficiency in collecting payments from customers over time.

In terms of payables turnover, the ratio started at 7.55 in March 2020 and showed a downward trend, reaching 7.45 by December 2024. This indicates a decrease in the company's ability to pay its suppliers in a timely manner over the period.

The working capital turnover ratio was not available for most periods, indicating a lack of data for analysis of this particular activity ratio.

Overall, Delta Air Lines Inc's activity ratios reflect mixed performance in managing inventory, receivables, and payables turnover over the period. The company should focus on improving inventory management and payables processing to enhance operational efficiency and liquidity in the future.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	13.52	13.40	11.29	7.75	6.01	5.04	5.38	6.36
Days of sales outstanding (DSO)	days	19.17	21.65	23.40	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
Number of days of payables	days	48.99	48.04	52.01	49.38	49.13	61.15	60.37	57.81	65.66	69.55	83.73	85.28	82.60	83.98	69.20	58.20	45.29	34.32	35.55	48.35

Based on the provided data for Delta Air Lines Inc, the following analysis of activity ratios can be observed:

1. Days of Inventory on Hand (DOH):
- The DOH reflects the number of days inventory is held before being sold.
- Delta Air Lines Inc's DOH fluctuated over time, ranging from a low of 5.04 days in September 2020 to a high of 13.52 days in December 2021.
- Generally, a lower DOH is preferred as it indicates efficient inventory management. However, the increasing trend from 2021 to 2022 and the absence of data for 2023 and beyond may suggest potential inventory management challenges.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect payment from credit sales.
- Delta Air Lines Inc's DSO ranged from a low of 14.89 days in June 2020 to a high of 58.60 days in March 2021, before gradually declining.
- A lower DSO indicates faster collection of receivables, which is a positive sign. The decreasing trend from 2021 onwards suggests improved efficiency in collecting payments.

3. Number of Days of Payables:
- This ratio represents how long a company takes to pay its suppliers.
- Delta Air Lines Inc's days of payables fluctuated, with periods of increase and decrease.
- An increase in days of payables may imply that the company is taking longer to pay its suppliers, potentially indicating cash flow management strategies or negotiations with vendors.

In summary, Delta Air Lines Inc's activity ratios indicate fluctuations in inventory management, accounts receivable collection, and supplier payment practices over the analyzed periods. Further examination of trends and industry benchmarks would provide additional insights into the company's operational efficiency and financial health.

Long-term

	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
Fixed asset turnover	1.67	1.62	1.64	1.62	1.67	1.63	1.61	1.59	1.56	1.44	1.32	1.12	1.05	0.82	0.62	0.43	0.63	0.90	1.18	1.42
Total asset turnover	0.81	0.79	0.79	0.78	0.78	0.77	0.74	0.72	0.68	0.63	0.54	0.46	0.39	0.31	0.23	0.16	0.22	0.30	0.47	0.65

The Fixed Asset Turnover ratio for Delta Air Lines Inc has been relatively stable over the past few years, ranging from 1.42 in March 2020 to 1.67 in December 2024. This indicates that the company generates between $1.42 to $1.67 in revenue for every dollar invested in fixed assets during the respective periods.

The Total Asset Turnover ratio shows a declining trend initially, starting at 0.65 in March 2020 and dropping to 0.22 in December 2020. However, the ratio has been gradually increasing since then, reaching 0.81 by December 2024. This suggests that Delta Air Lines Inc has been improving its efficiency in generating revenue from its total assets over time.

Overall, the trends in both the Fixed Asset Turnover and Total Asset Turnover ratios indicate that Delta Air Lines Inc has been effectively utilizing its assets to generate revenue, with some fluctuations in the early periods followed by a more stable and improving performance in later years.