Sun Country Airlines Holdings Inc (SNCY)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.51 | 4.28 | 4.48 | 4.81 |
| Days of sales outstanding (DSO) | days | 11.80 | 13.82 | 14.87 | 18.45 |
| Number of days of payables | days | 29.50 | 32.44 | 36.46 | 35.45 |
| Cash conversion cycle | days | -12.19 | -14.33 | -17.11 | -12.19 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 5.51 + 11.80 – 29.50
= -12.19
The cash conversion cycle for Sun Country Airlines Holdings Inc has shown a consistent trend of negative values from December 31, 2021, to December 31, 2024. This indicates that the company is efficiently managing its working capital, with the ability to convert its inventory into cash quickly.
On December 31, 2021, the cash conversion cycle was -12.19 days, meaning that the company was able to convert its investments in inventory and accounts receivable into cash within a short timeframe. Subsequently, on December 31, 2022, the cycle further decreased to -17.11 days, showcasing an improvement in working capital management.
By December 31, 2023, the cash conversion cycle stood at -14.33 days, further highlighting the company's effectiveness in converting sales into cash. This trend continued, with a slight decrease in the cycle to -12.19 days by December 31, 2024.
Overall, the consistently negative cash conversion cycle values indicate that Sun Country Airlines Holdings Inc is efficiently managing its cash flow, inventory, and accounts receivable, which is a positive indicator of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024