Delta Air Lines Inc (DAL)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 14.52 | 18.31 | 13.55 | 5.04 | 10.37 |
| Days of sales outstanding (DSO) | days | 19.99 | 23.44 | 31.00 | 31.52 | 22.30 |
| Number of days of payables | days | 49.13 | 65.65 | 82.80 | 37.95 | 46.41 |
| Cash conversion cycle | days | -14.62 | -23.90 | -38.24 | -1.39 | -13.73 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.52 + 19.99 – 49.13
= -14.62
The cash conversion cycle of Delta Air Lines, Inc. has exhibited fluctuations over the past five years. In 2023, the company's cash conversion cycle decreased to 19.68 days from 22.92 days in 2022. This indicates that Delta Air Lines took less time to convert its investments in inventory into cash in 2023. Compared to 2021 and 2020, where the cash conversion cycle was 29.35 days and 29.81 days respectively, the company improved its efficiency in managing its working capital in 2023.
Despite the improvement in 2023, the cash conversion cycle was higher than in 2019 when it stood at 22.16 days. This suggests that Delta Air Lines took longer to convert its investments in inventory into cash in 2023 compared to 2019. It is important for the company to continue monitoring its cash conversion cycle to ensure efficient management of its working capital in the future.
Peer comparison
Dec 31, 2023