JetBlue Airways Corp (JBLU)

Short-term

Turnover ratios

The activity ratios for JetBlue Airways Corp indicate how efficiently the company is managing its assets and liabilities.

1. Inventory Turnover:
- The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a certain period.
- JetBlue's inventory turnover has been increasing over the years from 2020 to 2022, peaking at 88.34 in 2022, but then saw a decrease in 2024 to 29.38.
- A high inventory turnover ratio signifies that JetBlue is efficiently managing its inventory and quickly converting it into sales. However, the sharp decline in 2024 could indicate potential issues in managing inventory levels effectively.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently JetBlue is collecting payments from its customers.
- The data provided shows that there were no receivables turnover figures available for the years 2020 to 2024.
- The absence of receivables turnover data may indicate that JetBlue did not report or track this metric during those years, making it challenging to assess the company's effectiveness in collecting receivables.

3. Payables Turnover:
- The payables turnover ratio helps to evaluate how quickly JetBlue is paying its suppliers.
- Similar to receivables turnover, there were no payables turnover figures available for the years 2020 to 2024.
- Without payables turnover data, it is difficult to determine if JetBlue is efficiently managing its payables or taking advantage of favorable credit terms with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively JetBlue is utilizing its working capital to generate sales.
- In 2020, the working capital turnover was 4.41, indicating that JetBlue generated sales 4.41 times for every dollar of working capital.
- However, no data was available for the working capital turnover for the years 2021 to 2024, except for a significant increase to 42.37 in 2024.
- The sharp increase in working capital turnover in 2024 could suggest that JetBlue improved its efficiency in utilizing working capital to drive sales, but the lack of data for the intervening years limits a comprehensive analysis of this trend.

In conclusion, while the increasing trend in inventory turnover and the notable improvement in working capital turnover in 2024 are positive signs, the absence of data for receivables turnover and payables turnover hinders a complete assessment of JetBlue's operational efficiency in managing its assets and liabilities.

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Average number of days

Based on the provided data for JetBlue Airways Corp's activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have decreased from 6.35 days as of December 31, 2020, to 4.75 days as of December 31, 2021, further declining to 4.13 days as of December 31, 2022. This indicates that JetBlue has been managing its inventory more efficiently, holding less inventory relative to its sales. However, there was a slight increase to 4.57 days as of December 31, 2023, followed by a significant jump to 12.42 days as of December 31, 2024, which may imply potential issues with inventory management or slower inventory turnover.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on days of sales outstanding (DSO), so it is not possible to analyze JetBlue's efficiency in collecting accounts receivable or the average number of days it takes to collect revenue from credit sales.

3. Number of Days of Payables:
- Similarly, there is no data available for the number of days of payables, which would have provided insight into JetBlue's payment practices with suppliers and the average number of days taken to pay its trade payables.

In conclusion, based on the available information, JetBlue Airways Corp has shown varying levels of efficiency in managing its inventory over the years, while data on sales outstanding and payables is not provided for a comprehensive analysis of its overall working capital management.

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Long-term

Long-term activity ratios are essential for assessing how efficiently a company like JetBlue Airways Corp is utilizing its assets to generate revenues. Let's delve into JetBlue's long-term activity ratios based on the provided data.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio indicates how efficiently a company is using its fixed assets to generate sales. A higher ratio signifies better asset utilization.
- In 2020, JetBlue had a Fixed Asset Turnover ratio of 0.35, indicating that for every dollar invested in fixed assets, the company generated $0.35 in sales.
- By the end of 2021, JetBlue's Fixed Asset Turnover ratio improved to 0.68, showing an increase in the efficiency of utilizing fixed assets to generate revenue.
- The ratio further improved in 2022 to 0.98, indicating a more optimal utilization of fixed assets to generate sales.
- However, as the data is not available for 2023 and 2024, we cannot assess the trend in JetBlue's Fixed Asset Turnover in those years.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how effectively a company is using its total assets to generate revenue. A higher ratio suggests better asset efficiency.
- In 2020, JetBlue's Total Asset Turnover ratio was 0.22, indicating that the company generated $0.22 in sales for every dollar of assets it owned.
- By the end of 2021, the ratio improved to 0.44, signifying a better utilization of total assets to generate revenue.
- In 2022, JetBlue's Total Asset Turnover ratio further increased to 0.70, reflecting an enhanced efficiency in asset utilization for revenue generation.
- In 2023, the ratio dipped slightly to 0.69, but it remained relatively stable, indicating that JetBlue continued to utilize its assets effectively.
- By the end of 2024, the Total Asset Turnover ratio decreased to 0.55, suggesting a potential decline in asset turnover efficiency compared to the previous year.

Overall, the analysis of JetBlue Airways Corp's long-term activity ratios shows improvements in asset turnover efficiency over the years, indicating enhanced utilization of assets to generate revenue. However, the absence of data for 2023 and 2024 makes it challenging to assess the complete trend in asset turnover efficiency for those years.