SkyWest Inc (SKYW)

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	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	11.42	10.93	10.37	10.29
Days of sales outstanding (DSO)	days	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	10.19	2.88	2.66	8.84
Number of days of payables	days	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	29.39	32.11	30.33	31.09
Cash conversion cycle	days	-84.69	-74.68	-71.43	-73.35	-69.82	-73.13	-88.20	-54.95	-61.30	-44.37	-25.09	-29.90	-17.32	-18.20	-22.62	-28.68	-7.78	-18.30	-17.30	-11.96

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 35.25 + 10.47 – 130.41
= -84.69

The cash conversion cycle for Skywest Inc. fluctuated over the past eight quarters. In Q4 2023, it decreased to 10.30 days from 15.14 days in Q3 2023, indicating a more efficient cash management system. However, compared to Q1 2023, there was a slight increase in the cash conversion cycle in Q4 2023. Looking at the trend over the quarters, the cycle peaked in Q3 2023 at 15.14 days and has since been decreasing.

Overall, Skywest Inc. has shown variability in its cash conversion cycle, with fluctuations observed quarter by quarter. It is important for the company to continue monitoring and managing its cash conversion cycle effectively to optimize working capital efficiency.