United Airlines Holdings Inc (UAL)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		27.37	24.04	13.87	10.56	31.20
DSO	days	13.34	15.18	26.31	34.57	11.70

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.37
= 13.34

The Days of Sales Outstanding (DSO) for United Airlines Holdings Inc has shown a fluctuating trend over the past five years. In 2019, the DSO was at its lowest level, standing at 11.51 days, indicating that, on average, it took the company approximately 11.51 days to collect its accounts receivable. Subsequently, in 2020, the DSO increased significantly to 30.78 days, which may suggest a potential deterioration in the company's accounts receivable collection efficiency.

However, in the following years, there was a noticeable improvement in the DSO metric. By the end of 2021, DSO decreased to 24.64 days and further reduced to 14.62 days by the end of 2022. This downward trend indicates a more efficient collection of accounts receivable, possibly reflecting improved credit policies or effective management of customer payments.

In 2023, the DSO dropped to 12.90 days, indicating that United Airlines Holdings Inc has continued to enhance its collection processes and reduce the time taken to convert credit sales into cash. Overall, the company has shown a positive trend in managing its accounts receivable over the years, which is crucial for maintaining healthy cash flows and overall financial stability.