Sun Country Airlines Holdings Inc (SNCY)

Short-term

Turnover ratios

Sun Country Airlines Holdings Inc's activity ratios provide insights into its operational efficiency and management of working capital.

1. Inventory turnover: The company's inventory turnover ratio is consistently reported as 0.00 over the past three years, indicating that the company may have effectively managed its inventory levels or operates on a Just-In-Time inventory system.

2. Receivables turnover: The receivables turnover ratio has shown improvement over the years, increasing from 20.66 in 2021 to 27.50 in 2023. This suggests that the company has been collecting its receivables more efficiently, indicating effective credit and collection management practices.

3. Payables turnover: The payables turnover ratio has consistently been reported as 0.00, indicating that the company may be managing its accounts payable effectively or maintaining good relationships with its suppliers.

4. Working capital turnover: The working capital turnover ratio was reported as 6.64 in 2021, but data for the subsequent years is not available. The higher ratio indicates that the company has been generating revenue efficiently with its working capital.

Overall, Sun Country Airlines Holdings Inc has shown improvements in its receivables turnover ratio, suggesting effective management of its accounts receivables. However, the company's inventory turnover and payables turnover ratios remain at 0.00, which may indicate specific strategies in place for managing inventory and payables.

---

Average number of days

Based on the provided data for Sun Country Airlines Holdings Inc's activity ratios:

1. Days of Inventory on Hand (DOH): The information for Days of Inventory on Hand is not available for all three years, indicating that the company may not track or report this metric consistently.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding have shown a positive trend, decreasing from 17.67 days in 2021 to 13.27 days in 2023. This indicates that Sun Country Airlines has been able to collect its accounts receivable more quickly over the years, which is a positive sign for the company's liquidity and efficiency.

3. Number of Days of Payables: Similar to Days of Inventory on Hand, the data for Number of Days of Payables is not available for all three years, suggesting that this metric may not be consistently monitored or reported by the company.

Overall, the improvement in Days of Sales Outstanding suggests that Sun Country Airlines has been managing its accounts receivable more effectively, potentially strengthening its cash flow and working capital position over the years. It would be beneficial for the company to provide more consistent data on all activity ratios to allow for a more comprehensive analysis of its operational efficiency.

---

Long-term

The fixed asset turnover ratio for Sun Country Airlines Holdings Inc has shown a consistent improvement over the past three years, increasing from 1.09 in 2021 to 1.29 in 2023. This indicates that the company is generating more revenue from its fixed assets, such as aircraft and facilities, which is positive for its operational efficiency.

On the other hand, the total asset turnover ratio has also been increasing steadily, from 0.45 in 2021 to 0.65 in 2023. This indicates that the company is generating more revenue relative to its total assets, which reflects an improvement in its overall asset utilization efficiency.

Overall, both the fixed asset turnover and total asset turnover ratios for Sun Country Airlines Holdings Inc show a positive trend, indicating that the company is effectively utilizing its assets to generate revenue and improve operational efficiency over the years.