JetBlue Airways Corp (JBLU)

Cash conversion cycle

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Days of inventory on hand (DOH) days 6.75 5.93 5.44 4.86 4.92 4.38 4.15 3.46 4.13 3.92 3.81 3.93 4.75 4.61 4.92 6.59 6.35 5.58 5.04 5.05
Days of sales outstanding (DSO) days
Number of days of payables days
Cash conversion cycle days 6.75 5.93 5.44 4.86 4.92 4.38 4.15 3.46 4.13 3.92 3.81 3.93 4.75 4.61 4.92 6.59 6.35 5.58 5.04 5.05

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 6.75 + — – —
= 6.75

The cash conversion cycle of JetBlue Airways Corp has shown some fluctuations over the quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flow from sales. A shorter cash conversion cycle indicates a more efficient use of resources and faster turnover of inventory.

From March 31, 2020 to September 30, 2021, the cash conversion cycle remained relatively stable, ranging between 4.61 days to 6.59 days. This indicates a consistent performance in managing working capital during that period. However, from March 31, 2022 to December 31, 2024, the cash conversion cycle decreased gradually from 4.13 days to 6.75 days.

The decreasing trend in the cash conversion cycle from March 31, 2022 to March 31, 2024 suggests improved efficiency in managing cash flow and working capital. This could be attributed to better inventory management, faster collection of receivables, or more extended payment terms with suppliers.

Overall, JetBlue Airways Corp's cash conversion cycle reflects fluctuations in working capital management efficiency. Analyzing the reasons behind these changes could provide insights into the company's operational performance and financial health.