SkyWest Inc (SKYW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.42 | 10.83 | 10.05 | 32.09 | 32.01 |
| Receivables turnover | 34.87 | 29.48 | 40.62 | 58.93 | 35.81 |
| Payables turnover | 2.82 | 3.16 | 2.11 | 10.50 | 12.43 |
| Working capital turnover | — | 14.91 | — | 49.49 | — |
The inventory turnover ratio for Skywest Inc. has consistently been reported as 0.00 over the past five years. This indicates that the company is either holding very low levels of inventory or may have inventory management issues.
In terms of receivables turnover, the company has shown variability over the years, with the ratio ranging from 29.89 to 55.43. A higher receivables turnover ratio signifies that Skywest Inc. is efficient in collecting payment from its customers.
The payables turnover ratio has been consistently reported as 0.00 for the past five years, suggesting that the company may not have significant payables or that it pays its creditors quickly.
The working capital turnover ratio has also shown variability, with data missing for certain years. This ratio indicates how effectively the company is utilizing its working capital to generate revenues. A higher working capital turnover ratio indicates better efficiency in using working capital.
Overall, based on the activity ratios provided, Skywest Inc. seems to have varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past five years.
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 | 35.02 | 33.72 | 36.33 | 11.37 | 11.40 |
| Days of sales outstanding (DSO) | days | 10.47 | 12.38 | 8.99 | 6.19 | 10.19 |
| Number of days of payables | days | 129.57 | 115.49 | 173.22 | 34.75 | 29.36 |
Based on the activity ratios provided for Skywest Inc., we can analyze the company's efficiency in managing its inventory, collecting receivables, and paying its payables over the past five years.
1. Days of Inventory on Hand (DOH):
Unfortunately, data for the Days of Inventory on Hand (DOH) ratio is not available in the table. This ratio typically measures how quickly a company turns its inventory into sales, indicating efficiency in inventory management.
2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding (DSO) ratio shows the average number of days it takes for the company to collect its accounts receivable. In 2023, the DSO was at 10.30 days, which is an improvement compared to the previous years. A lower DSO implies that the company is collecting receivables more quickly, which can positively impact its cash flow.
3. Number of Days of Payables:
Similar to the DOH ratio, data for the Number of Days of Payables ratio is not provided in the table. This ratio typically measures how long it takes for a company to pay its suppliers. A longer payment period can indicate potential liquidity advantages for the company.
Overall, based on the available DSO data, Skywest Inc. has shown improvement in collecting receivables more efficiently in 2023 compared to previous years. However, without information on inventory turnover and payables, a comprehensive analysis of the company's overall activity ratios cannot be provided. It would be beneficial to analyze all three activity ratios together to gain a more complete understanding of the company's operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.53 | 0.53 | 0.48 | 0.38 | 0.55 |
| Total asset turnover | 0.41 | 0.40 | 0.37 | 0.30 | 0.45 |
Based on the provided data, Skywest Inc.'s long-term activity ratios have exhibited fluctuations over the past five years. The fixed asset turnover ratio measures the company's efficiency in generating sales from its investment in fixed assets. Skywest Inc.'s fixed asset turnover has remained relatively stable, ranging from 0.40 to 0.55, with the highest value in 2019.
On the other hand, the total asset turnover ratio reflects how efficiently the company utilizes all its assets to generate revenue. Skywest Inc.'s total asset turnover ratio has also shown variability, ranging from 0.31 to 0.45 over the same period. The company experienced the lowest total asset turnover in 2020 and the highest in 2019.
Overall, the long-term activity ratios suggest that while Skywest Inc. has been consistent in generating sales from its fixed assets, its efficiency in utilizing all assets to generate revenue has fluctuated. Further analysis and comparison with industry standards would be necessary to gain a deeper understanding of the company's operational performance over time.