JetBlue Airways Corp (JBLU)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 69.12 | 85.22 | 71.24 | 57.07 | 68.96 |
| Receivables turnover | 28.34 | 28.42 | 28.42 | 28.51 | 34.89 |
| Payables turnover | 11.75 | 13.94 | 10.57 | 11.10 | 13.93 |
| Working capital turnover | — | — | — | 4.16 | — |
The activity ratios of Jetblue Airways Corp provide insight into the efficiency and effectiveness of the company's operations.
Inventory turnover has consistently been at 0.00 for the past five years, indicating that Jetblue Airways Corp has effectively managed its inventory levels by either quickly selling inventory or by holding minimal inventory levels.
Receivables turnover, on the other hand, has shown a slight decline over the years, from 35.04 in 2019 to 28.62 in 2023. This suggests that the company is taking slightly longer to collect payments from its customers, which could impact its cash flow and liquidity.
Payables turnover has also been consistently at 0.00 for the past five years, indicating that Jetblue Airways Corp may not have a significant amount of accounts payable or that it is managing its payables effectively.
The working capital turnover ratio is not available for the years listed, which limits our ability to assess how efficiently Jetblue Airways Corp is using its working capital to generate revenue.
Overall, Jetblue Airways Corp's activity ratios suggest that the company may need to focus on improving its collections process to enhance cash flow and liquidity management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.28 | 4.28 | 5.12 | 6.40 | 5.29 |
| Days of sales outstanding (DSO) | days | 12.88 | 12.84 | 12.85 | 12.80 | 10.46 |
| Number of days of payables | days | 31.05 | 26.19 | 34.55 | 32.88 | 26.20 |
Based on the provided data for Jetblue Airways Corp for the years 2019 to 2023, we can analyze the activity ratios as follows:
1. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding measures the average number of days it takes for Jetblue Airways Corp to collect its accounts receivable.
- The trend shows a slight increase from 10.42 days in 2019 to 12.76 days in 2023.
- An increasing DSO could indicate that customers are taking longer to pay their bills, possibly impacting the company's cash flow.
2. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand ratio was not provided in the data table, indicating a lack of information for this specific ratio.
- DOH measures how many days of sales are held in inventory before being sold.
- Without this ratio, it's challenging to assess Jetblue Airways Corp's efficiency in managing its inventory levels.
3. Number of Days of Payables:
- The table does not include data for the Number of Days of Payables, which is essential for evaluating the company's payment practices and liquidity position.
- This ratio typically reflects the average number of days Jetblue Airways Corp takes to pay its suppliers.
- The absence of this ratio limits our ability to assess the company's working capital management and payment strategies.
In conclusion, while we have insight into Jetblue Airways Corp's Days of Sales Outstanding over the past five years, the lack of data for Days of Inventory on Hand and Number of Days of Payables hinders a comprehensive analysis of the company's activity ratios. It would be beneficial to obtain complete information to gain a more detailed understanding of Jetblue Airways Corp's operational efficiency and financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.98 | 0.99 | 0.67 | 0.33 | 0.94 |
| Total asset turnover | 0.69 | 0.69 | 0.43 | 0.21 | 0.68 |
The analysis of Jetblue Airways Corp's long-term activity ratios reveals the company's efficiency in utilizing its fixed and total assets to generate revenue over the past five years.
Fixed asset turnover has fluctuated over the period, with the ratio standing at 0.99 in 2023, 1.00 in 2022, 0.68 in 2021, 4.84 in 2020, and 0.94 in 2019. A higher fixed asset turnover ratio indicates that the company is efficiently utilizing its fixed assets to generate sales. The substantial increase in 2020 may be due to changes in the company's asset base or business operations. However, the decline in 2021 suggests a less efficient utilization of fixed assets compared to the previous year.
Total asset turnover has also varied, with the ratio being 0.69 in 2023, 0.70 in 2022, 0.44 in 2021, 0.22 in 2020, and 0.68 in 2019. A higher total asset turnover ratio indicates that the company is generating more revenue relative to its total assets. Jetblue's total asset turnover has generally been low, indicating that the company may not be efficiently utilizing its total assets to generate revenues compared to its industry peers.
In conclusion, while Jetblue Airways Corp has shown fluctuations in both fixed asset turnover and total asset turnover ratios over the past five years, the company needs to focus on optimizing the utilization of its assets to improve its long-term profitability and efficiency.