Sun Country Airlines Holdings Inc (SNCY)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 66.23 | 70.09 | 80.28 | 78.09 | 85.14 | 85.76 | 87.90 | 95.41 | 81.52 | 79.45 | 84.60 | 83.26 | 75.83 |
| 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 |
| Payables turnover | 12.37 | 13.86 | 11.15 | 11.18 | 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 |
Sun Country Airlines Holdings Inc has shown a consistently high inventory turnover ratio over the past few years, indicating strong efficiency in managing its inventory. The company's inventory turnover has ranged from 66.23 to 95.41, with an average of approximately 81.27 during the period under review.
In terms of receivables turnover, Sun Country Airlines Holdings Inc has seen fluctuations but generally maintained a healthy ratio. The company's receivables turnover has ranged from 19.97 to 35.96, with an average of approximately 25.62 during the period analyzed.
Regarding payables turnover, the company has shown stability in its payment cycles. The payables turnover ratio has ranged from 9.21 to 13.86, with an average of approximately 11.33 during the period under consideration.
Looking at the working capital turnover ratio, Sun Country Airlines Holdings Inc has shown a strong performance in utilizing its working capital efficiently. The company's working capital turnover has steadily increased from 6.43 to 47.81, indicating a significant improvement in its ability to generate revenue relative to its working capital.
Overall, Sun Country Airlines Holdings Inc demonstrates strong efficiency in managing its inventory, receivables, payables, and working capital, reflecting a well-structured and effective operational management strategy. These ratios suggest that the company is effectively utilizing its resources and assets to generate revenue and optimize its financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.51 | 5.21 | 4.55 | 4.67 | 4.29 | 4.26 | 4.15 | 3.83 | 4.48 | 4.59 | 4.31 | 4.38 | 4.81 |
| Days of sales outstanding (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 |
| Number of days of payables | days | 29.50 | 26.34 | 32.73 | 32.64 | 32.46 | 30.86 | 31.65 | 32.86 | 36.46 | 31.54 | 39.63 | 38.89 | 35.45 |
Sun Country Airlines Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH): The trend in Sun Country's DOH shows fluctuations but generally stays within a range of 4 to 5 days. A lower DOH is favorable as it indicates that inventory is moving quickly and not sitting idle. The slight decrease in DOH from 4.81 days on December 31, 2021, to 4.48 days on December 31, 2022, suggests improved inventory management efficiency during that period.
2. Days of Sales Outstanding (DSO): Sun Country's DSO indicates the average number of days it takes to collect payment from customers after a sale is made. The company shows a decrease in DSO from 18.24 days on December 31, 2021, to 11.92 days on December 31, 2024, which is a positive trend. A lower DSO implies faster collection of receivables, improving cash flow and liquidity.
3. Number of Days of Payables: Sun Country's payables period reflects the average number of days it takes the company to pay its suppliers. The company's payables days range between 26 to 40 days, with a decreasing trend from 35.45 days on December 31, 2021, to 29.50 days on December 31, 2024. A longer payables period allows the company to hold onto cash longer, potentially improving working capital management.
In summary, Sun Country Airlines Holdings Inc has shown positive trends in its activity ratios, with improvements in inventory management, receivables collection efficiency, and payables management over the analyzed period. These improvements indicate enhanced operational efficiency and effective working capital management practices.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.47 | 1.59 | 1.53 | 1.52 | 1.39 | 1.48 | 1.44 | 1.54 | 1.65 | 1.55 | 1.56 | 1.75 | 1.17 |
| Total asset turnover | 0.66 | 0.65 | 0.64 | 0.62 | 0.62 | 0.62 | 0.59 | 0.59 | 0.57 | 0.54 | 0.51 | 0.49 | 0.44 |
Sun Country Airlines Holdings Inc's fixed asset turnover ratio increased from 1.17 in December 2021 to 1.47 in December 2024, indicating the company's ability to generate sales from its fixed assets improved over the period. This suggests more efficient utilization of the company's long-term assets to generate revenue.
The total asset turnover ratio also showed a positive trend, climbing from 0.44 in December 2021 to 0.66 in December 2024. This indicates that Sun Country Airlines was more effective in generating revenue relative to its total assets over the period. The increasing trend suggests improved efficiency in asset utilization, which could be attributed to better management of both fixed and current assets.
Overall, the long-term activity ratios of Sun Country Airlines Holdings Inc demonstrate an increasing trend in asset turnover, indicating enhanced efficiency in asset utilization and potentially improved operational performance over the analyzed period.