Sun Country Airlines Holdings Inc (SNCY)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Receivables turnover | 30.93 | 26.40 | 24.54 | 19.79 | |
| DSO | days | 11.80 | 13.82 | 14.87 | 18.45 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.93
= 11.80
Analyzing Sun Country Airlines Holdings Inc's Days of Sales Outstanding (DSO) over the period from December 31, 2021, to December 31, 2024, reveals a decreasing trend.
Starting at 18.45 days as of December 31, 2021, the company required this many days to convert its accounts receivable into cash. By December 31, 2022, the DSO had decreased to 14.87 days, indicating an improvement in the company's efficiency in collecting payments from customers.
The trend continued in the subsequent years, with DSO declining to 13.82 days by December 31, 2023, and further dropping to 11.80 days by December 31, 2024. This declining pattern suggests that Sun Country Airlines Holdings Inc has been successful in managing its accounts receivable more effectively, potentially through efficient credit policies, enhanced collection processes, or improved customer relationships.
The consistent reduction in Days of Sales Outstanding indicates that the company is able to convert its sales into cash more promptly, which can positively impact its cash flow and overall financial performance. It reflects positively on the company's liquidity and working capital management, allowing for improved financial stability and operational efficiency.
Peer comparison
Dec 31, 2024