SkyWest Inc (SKYW)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		34.87	29.48	40.62	58.93	35.81
DSO	days	10.47	12.38	8.99	6.19	10.19

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 34.87
= 10.47

Based on the data provided for Skywest Inc.'s Days of Sales Outstanding (DSO) over the past five years, there has been variability in the company's efficiency in collecting its accounts receivable.

In 2023, the DSO stood at 10.30 days, showing an improvement from the previous year's 12.21 days, indicating that the company took less time to collect its outstanding sales compared to the prior year.

Comparing 2023 with 2021, there was a slight increase in DSO from 8.79 days to 10.30 days, suggesting that the company took slightly longer to convert its accounts receivable into cash in the most recent year.

Looking further back to 2020, the DSO was 6.59 days, indicating that Skywest Inc. was more efficient in collecting its accounts receivable in 2020 compared to the most recent year.

In 2019, the DSO was 11.56 days, showing a significant improvement in efficiency in collection in 2020 to 6.59 days.

Overall, the trend in Skywest Inc.'s DSO over the past five years demonstrates some variability in the company's ability to convert its accounts receivable into cash promptly. Efforts to manage and improve this metric, such as tightening credit policies or enhancing collection processes, may be considered to optimize working capital and overall financial performance.