SkyWest Inc (SKYW)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 10.41 10.33 10.16 10.27 10.35 11.18 11.30 11.13 10.77 9.56 10.23 15.13 19.57 27.42 29.95 28.14 32.05 31.92 33.09 33.92
Receivables turnover 29.32 29.86 29.81 33.59 34.87 20.65 23.05 24.29 29.48 32.29 30.97 31.97 40.62 — — — 59.93 629.34 133.84 153.76
Payables turnover — 3.06 2.85 2.77 2.80 2.92 3.05 3.01 3.14 2.98 2.69 4.03 4.10 6.33 9.79 8.52 10.49 12.08 10.03 8.73
Working capital turnover — — — — — — 165.55 29.18 14.91 29.74 162.62 — — — 101.83 38.79 50.33 19.07 — —

Based on the provided data, we can analyze SkyWest Inc's activity ratios as follows:

1. Inventory Turnover:
SkyWest Inc's inventory turnover ratio has been gradually decreasing from 33.92 in March 2020 to 10.41 in December 2024. This indicates a substantial drop in the rate at which the company is selling its inventory over the years. A lower inventory turnover ratio may suggest inefficiency in managing and selling inventory, leading to potential liquidity issues.

2. Receivables Turnover:
The receivables turnover ratio for SkyWest Inc fluctuated significantly over the years, ranging from 20.65 to 629.34. This ratio measures how efficiently the company is collecting on its credit sales. A high receivables turnover ratio indicates that the company is able to collect its outstanding receivables quickly. The sharp fluctuations in this ratio may reflect changes in the company's credit policies or the creditworthiness of its customers.

3. Payables Turnover:
SkyWest Inc's payables turnover ratio shows a declining trend from 8.73 in March 2020 to 3.06 in September 2024. A decreasing payables turnover ratio suggests that the company is taking longer to pay its suppliers, which could lead to strained relationships with vendors or potential cash flow issues in the future.

4. Working Capital Turnover:
The working capital turnover ratio for SkyWest Inc is sporadic, with some periods showing a significant increase while others having no data reported. A higher working capital turnover ratio indicates efficient utilization of working capital to generate sales. The missing data in some periods makes it challenging to draw consistent conclusions about the company's working capital management efficiency over time.

Overall, a thorough analysis of all these activity ratios can provide valuable insights into SkyWest Inc's operational efficiency and effectiveness in managing its assets, liabilities, and working capital.

Average number of days

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 35.07 35.33 35.91 35.56 35.25 32.65 32.31 32.81 33.90 38.16 35.68 24.13 18.65 13.31 12.19 12.97 11.39 11.43 11.03 10.76
Days of sales outstanding (DSO) days 12.45 12.22 12.25 10.87 10.47 17.67 15.83 15.03 12.38 11.30 11.79 11.42 8.99 — — — 6.09 0.58 2.73 2.37
Number of days of payables days — 119.14 128.19 131.60 130.41 125.00 119.57 121.18 116.10 122.60 135.67 90.50 88.94 57.68 37.28 42.87 34.80 30.22 36.38 41.82

SkyWest Inc's activity ratios show the efficiency of the company in managing its inventory, receivables, and payables over time.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have increased steadily from 10.76 days on March 31, 2020, to 35.07 days on December 31, 2024.
- This indicates that the company is holding inventory for a longer period, which could tie up cash and increase carrying costs.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding fluctuated over the years, with some periods showing no data.
- On December 31, 2021, DSO reached 8.99 days and then remained relatively stable around 12 days from March 31, 2023, to December 31, 2024.
- This suggests that the company takes around 12 to 13 days on average to collect its accounts receivable.

3. Number of Days of Payables:
- The number of days of payables increased significantly from 41.82 days on March 31, 2020, to 128.19 days on June 30, 2024.
- A higher number of days signifies that the company is taking longer to pay its suppliers, which may indicate cash flow issues or strained supplier relationships.

Overall, the trends in these activity ratios suggest that SkyWest Inc may need to focus on better inventory management, efficient accounts receivable collection, and maintaining a balance in its payables to improve its working capital efficiency and overall financial health.

Long-term

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
Fixed asset turnover 0.64 0.62 0.59 0.55 0.53 0.51 0.52 0.52 0.53 0.54 0.54 0.52 0.48 0.47 0.41 0.35 0.39 0.43 0.48 0.54
Total asset turnover 0.50 0.48 0.46 0.43 0.41 0.40 0.40 0.40 0.40 0.41 0.41 0.40 0.37 0.36 0.31 0.27 0.30 0.33 0.37 0.44

SkyWest Inc's long-term activity ratios indicate efficiency in utilizing its fixed and total assets. The fixed asset turnover ratio has shown a fluctuating trend, starting at 0.54 in March 2020, decreasing to 0.39 by December 2020, and gradually increasing to 0.64 by December 2024. This suggests that the company is generating increasing revenue from its fixed assets over time.

In comparison, the total asset turnover ratio started at 0.44 in March 2020, dipped to 0.27 in March 2021, and then improved to 0.50 by December 2024. This indicates that SkyWest Inc has become more effective in generating sales from its total assets, including fixed assets and current assets, over the years.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios reflects the company's ability to efficiently manage its assets and generate revenue. This efficiency can contribute to improved financial performance and profitability for SkyWest Inc in the long run.