Sun Country Airlines Holdings Inc (SNCY)

Days of sales outstanding (DSO)

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
Receivables turnover 30.62 27.49 23.01 27.25 26.40 23.14 35.96 26.25 24.54 25.77 19.97 22.04 20.01
DSO days 11.92 13.28 15.86 13.39 13.82 15.78 10.15 13.90 14.87 14.16 18.28 16.56 18.24

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.62
= 11.92

The Days of Sales Outstanding (DSO) for Sun Country Airlines Holdings Inc have shown a fluctuating trend over the period from December 31, 2021, to December 31, 2024. The DSO measures the number of days it takes for the company to collect its accounts receivable.

Initially, on December 31, 2021, the DSO stood at 18.24 days, indicating that on average, it took Sun Country Airlines around 18 days to collect its sales. Over the next few quarters, there was a slight decrease in the DSO, reaching 13.90 days on March 31, 2023.

However, the trend reversed, and the DSO increased to 15.86 days by June 30, 2024, before declining again to 11.92 days by December 31, 2024. This variability in the DSO may suggest changes in the company's collection policies, customer payment behavior, or the efficiency of the accounts receivable process.

Overall, monitoring the DSO over time is crucial for assessing the company's liquidity and efficiency in managing its receivables. Maintaining a balance between prompt collection and maintaining positive customer relationships is essential for Sun Country Airlines Holdings Inc to ensure healthy cash flow and financial stability.