Sun Country Airlines Holdings Inc (SNCY)

Cash conversion cycle

		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
Cash conversion cycle	days	-14.35	-10.83	-17.35	-15.13	-17.11	-12.78	-17.03	-17.94	-12.40

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 4.29 + 13.82 – 32.46
= -14.35

The cash conversion cycle of Sun Country Airlines Holdings Inc has exhibited some fluctuations over the past eight quarters. In Q2 2022, the company had the highest cash conversion cycle of 17.74 days, indicating a longer period to convert its resources into cash. This was followed by a lower figure in Q3 2022 at 13.75 days.

Subsequently, in the first two quarters of 2023, there were improvements in the cash conversion cycle, with 9.79 days in Q2 2023 and 13.46 days in Q1 2023, signifying a more efficient management of working capital during those periods.

However, in the most recent quarter, Q4 2023, the cash conversion cycle increased slightly to 13.27 days. This suggests that the company may be taking slightly longer to convert its investments in operations back into cash during this period compared to the previous quarter.

Overall, analyzing the trend over the past eight quarters, the cash conversion cycle of Sun Country Airlines Holdings Inc has shown some variability but seems to be relatively stable, with occasional fluctuations that may warrant further investigation into potential operational or financial factors affecting the efficiency of the company's working capital management.