Delta Air Lines Inc (DAL)

Cash conversion cycle

		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
Cash conversion cycle	days	-29.83	-26.40	-28.61	-25.87	-29.14	-40.33	-39.55	-35.57	-42.22	-44.66	-55.76	-52.31	-38.17	-35.69	-9.30	8.15	-7.76	-6.42	-15.28	-23.46

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 19.17 – 48.99
= -29.83

Delta Air Lines Inc has shown a consistently negative cash conversion cycle over the past few years, indicating efficient management of its operating cycle. The company has been able to convert its inventory into cash quickly, reflecting effective inventory management and sales strategies. The negative values suggest that Delta Air Lines is able to collect cash from customers before paying its suppliers, resulting in a short cash conversion cycle. This efficient cycle is beneficial as it allows the company to maintain liquidity and potentially invest excess cash in growth opportunities. The trend of decreasing negative values over time until September 30, 2024, indicates further improvement in the efficiency of Delta Air Lines' cash conversion cycle. However, a slight increase from September 30, 2024, to December 31, 2024, suggests a minor lengthening of the cycle, which may warrant monitoring in future periods.