SkyWest Inc (SKYW)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 29.56 | 34.87 | 29.48 | 40.62 | 58.93 | |
| DSO | days | 12.35 | 10.47 | 12.38 | 8.99 | 6.19 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 29.56
= 12.35
The days of sales outstanding (DSO) for SkyWest Inc have shown an increasing trend over the past five years. Starting at 6.19 days on December 31, 2020, the DSO increased to 8.99 days by December 31, 2021, and further rose to 12.38 days by December 31, 2022. However, there was a slight decrease in DSO to 10.47 days on December 31, 2023, before rising again to 12.35 days by December 31, 2024.
The rising trend in DSO indicates that SkyWest Inc is taking longer to collect revenue from its sales over the years. A higher DSO may imply potential issues with accounts receivable management, such as delays in customer payments or potential credit risks. It is important for the company to monitor and address the factors contributing to the increasing DSO to ensure efficient and timely collection of receivables, thereby maintaining healthy liquidity and cash flow levels.
Peer comparison
Dec 31, 2024