JetBlue Airways Corp (JBLU)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -12.89 | -9.07 | -16.58 | -13.68 | -10.45 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.28 + 12.88 – 31.05
= -12.89
The cash conversion cycle of Jetblue Airways Corp has shown a consistent trend of slightly increasing over the past five years. The cycle lengthened from 10.42 days in 2019 to 12.76 days in 2023. This indicates that, on average, it takes Jetblue Airways Corp about 12.76 days to convert its invested resources in inventory into cash receipts from customers.
The cash conversion cycle measures the efficiency and liquidity of a company's working capital management. A longer cash conversion cycle suggests that the company takes longer to convert its investments in inventory and other resources into cash inflows, which may imply lower liquidity or potential inefficiencies in managing its working capital.
Jetblue Airways Corp should closely monitor its cash conversion cycle and identify opportunities to optimize the efficiency of its working capital management to potentially reduce the cycle length and improve its cash flow position.
Peer comparison
Dec 31, 2023