Sun Country Airlines Holdings Inc (SNCY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 85.14 | 85.76 | 87.90 | 95.41 | 81.52 | 79.45 | 84.60 | 83.26 | 75.83 |
| Receivables turnover | 26.40 | 23.14 | 35.96 | 26.25 | 24.54 | 25.77 | 19.97 | 22.04 | 20.01 |
| Payables turnover | 11.24 | 11.83 | 11.53 | 11.11 | 10.01 | 11.57 | 9.21 | 9.39 | 10.30 |
| Working capital turnover | — | — | — | — | — | 47.81 | 24.03 | 14.64 | 6.43 |
The activity ratios of Sun Country Airlines Holdings Inc provide insight into how efficiently the company manages its various operational activities.
1. Inventory Turnover: The company consistently shows a zero inventory turnover across all quarters, indicating that Sun Country Airlines Holdings Inc effectively manages its inventory levels and does not hold excess inventory.
2. Receivables Turnover: Sun Country Airlines Holdings Inc's receivables turnover has shown some fluctuations over the quarters, but overall remains relatively high, suggesting that the company efficiently collects its accounts receivables. A higher turnover indicates better management of credit sales and collection processes.
3. Payables Turnover: The company consistently reports a payables turnover of zero across all quarters, indicating that Sun Country Airlines Holdings Inc has not been able to effectively manage its accounts payable turnover during these periods.
4. Working Capital Turnover: The working capital turnover ratio is only available for the last three quarters. The significant decrease in working capital turnover between Q3 and Q4 of 2022 suggests a decrease in efficiency in utilizing working capital to generate sales. This ratio reflects how well the company is using its working capital to support its revenue-generating activities.
Overall, while the company appears to efficiently manage its accounts receivables, there are opportunities to improve its inventory and payables turnover ratios to enhance operational efficiency and liquidity management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 4.29 | 4.26 | 4.15 | 3.83 | 4.48 | 4.59 | 4.31 | 4.38 | 4.81 |
| Days of sales outstanding (DSO) | days | 13.82 | 15.78 | 10.15 | 13.90 | 14.87 | 14.16 | 18.28 | 16.56 | 18.24 |
| Number of days of payables | days | 32.46 | 30.86 | 31.65 | 32.86 | 36.46 | 31.54 | 39.63 | 38.89 | 35.45 |
The Days of Inventory on Hand (DOH) ratio for Sun Country Airlines Holdings Inc is not available for the specified periods.
The Days of Sales Outstanding (DSO) ratio fluctuated over the past eight quarters, ranging from a low of 9.79 days in Q2 2023 to a high of 17.74 days in Q2 2022. DSO measures the average number of days it takes for the company to collect revenue after a sale, indicating the efficiency of its accounts receivable management.
The Number of Days of Payables ratio is not provided for the specified periods, making it challenging to assess the efficiency of the company's accounts payable management over time.
In general, a decreasing trend in DSO reflects improved collection efficiency, while a stable or increasing trend may suggest potential issues with receivables management. The absence of DOH and payables data limits the comprehensive analysis of Sun Country Airlines Holdings Inc's activity ratios.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.39 | 1.48 | 1.44 | 1.54 | 1.65 | 1.55 | 1.56 | 1.75 | 1.17 |
| Total asset turnover | 0.62 | 0.62 | 0.59 | 0.59 | 0.57 | 0.54 | 0.51 | 0.49 | 0.44 |
The fixed asset turnover ratio of Sun Country Airlines Holdings Inc has been relatively stable, ranging from 1.24 to 1.29 over the past eight quarters. This ratio indicates that the company generates around $1.24 to $1.29 in revenue for each dollar invested in fixed assets. The consistent performance suggests efficient utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown a slight increasing trend, from 0.51 in Q1 2022 to 0.65 in Q4 2023. This ratio signifies the company's ability to generate sales relative to its total assets. The improvement in total asset turnover indicates that Sun Country Airlines Holdings Inc is becoming more efficient in using its total assets to generate revenue over the quarters.
Overall, the analysis of long-term activity ratios for Sun Country Airlines Holdings Inc suggests that the company has been effectively managing its assets to generate revenue, both in terms of fixed assets and total assets.