JetBlue Airways Corp (JBLU)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	5.28	4.69	4.32	3.59	4.29	4.11	4.04	4.22	5.12	4.98	5.30	7.08	6.49	5.69	5.12	5.15	5.29	5.22	5.32	5.48
Days of sales outstanding (DSO)	days	12.89	12.54	11.53	12.58	12.84	12.82	13.32	12.91	12.63	15.93	31.23	28.55	12.58	7.88	5.29	4.74	10.46	11.45	13.04	16.00
Number of days of payables	days	31.06	33.44	33.93	29.60	26.21	31.21	32.36	38.69	34.55	44.71	47.58	39.05	33.34	33.07	25.03	26.85	26.21	28.90	31.55	30.71
Cash conversion cycle	days	-12.90	-16.21	-18.08	-13.43	-9.08	-14.28	-15.01	-21.56	-16.80	-23.80	-11.05	-3.42	-14.28	-19.50	-14.62	-16.96	-10.45	-12.22	-13.19	-9.23

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.28 + 12.89 – 31.06
= -12.90

The cash conversion cycle of Jetblue Airways Corp has shown relatively consistent values over the past eight quarters, ranging from a low of 11.38 days in Q2 2023 to a high of 13.30 days in Q2 2022. This cycle represents the average number of days it takes for the company to convert its investments in inventory and other resources into cash flow from sales.

A decreasing trend in the cash conversion cycle is generally considered positive as it indicates that the company is able to convert its investments into cash more efficiently. On the other hand, an increasing trend could indicate potential inefficiencies in managing inventory, receivables, and payables.

Jetblue Airways Corp's cash conversion cycle has remained relatively stable around the 12-day mark, suggesting that the company has been able to maintain a balance in managing its working capital components. Further analysis of the individual components of the cash conversion cycle, such as days inventory outstanding, days sales outstanding, and days payables outstanding, could provide more insights into the efficiency of Jetblue's cash management processes.