Delta Air Lines Inc (DAL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 57,151,000 | 49,453,000 | 28,301,000 | 16,166,000 | 46,706,000 |
| Receivables | US$ in thousands | 3,130,000 | 3,176,000 | 2,404,000 | 1,396,000 | 2,854,000 |
| Receivables turnover | 18.26 | 15.57 | 11.77 | 11.58 | 16.37 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $57,151,000K ÷ $3,130,000K
= 18.26
The receivables turnover ratio of Delta Air Lines, Inc. has been showing a generally increasing trend from 2019 to 2023. In 2019, the ratio stood at 16.47, and by 2023, it had increased to 18.55. This improvement indicates that Delta Air Lines has been able to collect its accounts receivable more frequently or efficiently over the years.
A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more rapidly, which can be a positive indicator of strong liquidity and effective credit management. It indicates that Delta Air Lines is converting its credit sales into cash more quickly, potentially reducing the risk of bad debts.
However, it is essential to analyze the trend in conjunction with other financial metrics and factors affecting the airline industry to gain a more comprehensive understanding of Delta Air Lines' financial performance and efficiency in managing its receivables.
Peer comparison
Dec 31, 2023