Delta Air Lines Inc (DAL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 13.55 | 5.04 |
| Days of sales outstanding (DSO) | days | 19.10 | 19.99 | 23.44 | 31.00 | 31.52 |
| Number of days of payables | days | 48.99 | 49.13 | 65.65 | 82.80 | 37.95 |
| Cash conversion cycle | days | -29.89 | -29.14 | -42.20 | -38.24 | -1.39 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 19.10 – 48.99
= -29.89
The cash conversion cycle of Delta Air Lines Inc has shown a consistent trend of improvement over the years, with a decline from -1.39 days as of December 31, 2020 to -29.89 days as of December 31, 2024. This indicates that the company has been able to efficiently manage its cash flows and operating cycle, resulting in a reduced time taken to convert its investments in inventory and other resources into cash receipts from customers. The negative values signify that Delta has been able to collect cash from customers before having to pay its suppliers, reflecting a strong liquidity position. Overall, the improving cash conversion cycle indicates effective working capital management by Delta Air Lines Inc.
Peer comparison
Dec 31, 2024