Delta Air Lines Inc (DAL)

Liquidity 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
Current ratio 0.41 0.39 0.44 0.46 0.47 0.50 0.57 0.66 0.65 0.76 0.83 0.83 0.86 1.09 1.27 0.94 0.53 0.41 0.34 0.34
Quick ratio 0.29 0.26 0.30 0.32 0.35 0.37 0.44 0.53 0.54 0.65 0.74 0.74 0.77 0.97 1.17 0.85 0.50 0.28 0.23 0.23
Cash ratio 0.16 0.15 0.18 0.21 0.23 0.25 0.32 0.41 0.41 0.54 0.63 0.65 0.68 0.89 1.09 0.78 0.38 0.14 0.09 0.09

Delta Air Lines Inc's liquidity ratios, including the current ratio, quick ratio, and cash ratio, have fluctuated over the past few quarters. As of March 31, 2024, the current ratio stands at 0.41, indicating that the company may face challenges in meeting its short-term obligations with its current assets alone. The quick ratio, which excludes inventory from current assets, is even lower at 0.29, suggesting that Delta's ability to cover immediate liabilities without relying on inventory is weak.

The cash ratio, which only considers cash and cash equivalents in relation to current liabilities, is at 0.16 as of March 31, 2024. This ratio remains relatively low, indicating that Delta may have limited cash reserves available to settle its short-term obligations.

Overall, the declining trend in liquidity ratios over the past few quarters suggests potential liquidity concerns for Delta Air Lines Inc. It may indicate a need for the company to closely monitor and manage its cash flow to ensure it can meet its financial obligations in the near term.

See also:

Delta Air Lines Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days -10.08 -14.62 -23.01 -22.58 -18.80 -23.91 -23.99 -28.64 -29.41 -38.17 -35.69 -9.30 8.15 -7.76 -6.42 -15.28 -23.46 -13.77 -15.46 -13.45

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. Delta Air Lines Inc's cash conversion cycle has displayed fluctuations over the past few quarters, ranging from -38.17 days to 8.15 days. A negative cash conversion cycle, as seen in most periods for Delta Air Lines, indicates that the company is able to collect cash from customers before paying its suppliers, leading to efficient cash management.

In recent quarters, Delta Air Lines has shown improvements in its cash conversion cycle, moving from -38.17 days to -10.08 days most recently. A decreasing trend in the cash conversion cycle signifies that the company is becoming more efficient in managing its working capital, which is a positive indicator of financial health. However, the company experienced a slight increase in the cash conversion cycle in the earlier periods, from 8.15 days to -38.17 days, which may suggest temporary challenges in working capital management or fluctuations in business operations.

Overall, the decreasing trend in the cash conversion cycle for Delta Air Lines Inc reflects an improvement in its efficiency in managing cash flows and working capital, which is a crucial aspect of financial performance and liquidity management in the airline industry.