JetBlue Airways Corp (JBLU)
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 | 12.42 | 4.57 | 4.13 | 4.75 | 6.35 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 12.42 | 4.57 | 4.13 | 4.75 | 6.35 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 12.42 + — – —
= 12.42
The cash conversion cycle of JetBlue Airways Corp has shown a decreasing trend over the years, indicating an improvement in its efficiency in managing cash flows. As of December 31, 2020, the company's cash conversion cycle was 6.35 days, which decreased to 4.75 days by December 31, 2021, further declining to 4.13 days by December 31, 2022. However, there was a slight uptick in the cash conversion cycle to 4.57 days by December 31, 2023, followed by a significant increase to 12.42 days by December 31, 2024.
Overall, the company has been able to collect cash from its operating cycle at a faster pace in recent years, apart from the anomaly in 2024. A lower cash conversion cycle typically signifies that the company is managing its working capital efficiently, converting inventory to cash quickly, and collecting receivables promptly. Nonetheless, a sudden spike in the cash conversion cycle in 2024 may warrant further investigation to identify the reasons behind this deviation.
Peer comparison
Dec 31, 2024