Delta Air Lines Inc (DAL)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	23.12	25.14	21.07	21.50	21.77	19.93	17.66	13.46	15.93	27.00	27.24	32.34	47.10	60.71	72.39	67.84	57.38	35.18	49.18	47.26
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
Payables turnover	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	7.86	8.05	8.30
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	10.95	4.52	—	—	—	—	—

The inventory turnover ratio of Delta Air Lines Inc has shown fluctuating trends over the past few quarters, with values ranging from a low of 13.46 to a high of 72.39. This indicates that the company is managing its inventory efficiently, with higher turnover ratios generally being more favorable as they suggest faster movement of goods.

On the other hand, the receivables turnover ratio has also varied, but generally remained stable between 6.23 and 24.52. This suggests that Delta Air Lines is collecting its receivables at a consistent pace, indicating good credit management practices.

The payables turnover ratio has shown a similar pattern, fluctuating between 4.28 and 10.63. This ratio indicates how quickly the company is paying off its suppliers, and higher values may suggest efficient cash management.

The working capital turnover ratio, while not available for all periods, indicates how effectively the company is utilizing its working capital to generate sales. The available data shows a wide range of values, with the highest at 10.95, indicating that Delta Air Lines is effectively utilizing its resources to generate revenue.

Overall, Delta Air Lines Inc's activity ratios reflect varying levels of efficiency in managing inventory, receivables, payables, and working capital, which are all crucial aspects of the company's operational performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	15.79	14.52	17.32	16.97	16.77	18.31	20.66	27.12	22.91	13.52	13.40	11.29	7.75	6.01	5.04	5.38	6.36	10.37	7.42	7.72
Days of sales outstanding (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
Number of days of payables	days	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	46.41	45.34	43.97

Delta Air Lines Inc's activity ratios show trends in how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for Delta to sell its inventory. A decreasing trend in DOH over time suggests that the company is managing its inventory well and selling products more quickly.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for Delta to collect on its sales. A lower DSO is preferable as it indicates that the company is collecting payments faster. Delta has shown fluctuations in this ratio, which may indicate changes in customer payment behavior or the effectiveness of the company's credit policies.

3. Number of Days of Payables: This ratio reflects how long Delta takes to pay its suppliers. An increase in days of payables may suggest that the company is taking longer to settle its obligations, potentially to preserve cash. However, delaying payments excessively can strain vendor relationships.

By analyzing these activity ratios, stakeholders can assess Delta's efficiency in managing its inventory, collecting receivables, and paying suppliers, which are crucial aspects of its operational performance and liquidity management.

Long-term

	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
Fixed asset turnover	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	1.55	1.50	1.51
Total asset turnover	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	0.72	0.73	0.73

Delta Air Lines Inc's fixed asset turnover ratio has been relatively stable over the past few quarters, ranging from 1.12 to 1.67. This indicates that the company is generating revenue efficiently from its investments in fixed assets. The increasing trend in fixed asset turnover suggests that Delta has been utilizing its fixed assets more effectively to generate sales.

On the other hand, the total asset turnover ratio has also shown improvement over time, albeit at a slower pace compared to the fixed asset turnover. The total asset turnover ratio has increased from 0.16 to 0.78, indicating that Delta is generating more revenue relative to its total assets. This could be a result of better asset utilization and management efficiency.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Delta Air Lines Inc has been improving its operational efficiency and effectively utilizing its assets to generate revenue. This could be a positive sign for investors as it indicates that the company is maximizing its resources to drive profitability.