United Airlines Holdings Inc (UAL)

Days of sales outstanding (DSO)

		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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		27.37	23.12	24.51	20.72	24.04	19.24	15.33	13.26	13.87	10.93	7.54	7.02	10.81	18.34	35.60	51.06	31.31	26.17	23.80	23.19
DSO	days	13.34	15.79	14.89	17.62	15.18	18.98	23.80	27.52	26.31	33.39	48.39	51.98	33.76	19.90	10.25	7.15	11.66	13.95	15.34	15.74

December 31, 2023 calculation

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

The days of sales outstanding (DSO) for United Airlines Holdings Inc have shown some fluctuations in recent quarters. In Q4 2023, the DSO decreased to 12.90 days from 15.25 days in Q3 2023, indicating a more efficient collection of accounts receivable. This improvement may imply a tighter credit policy or more prompt payment behavior from customers.

Comparing Q4 2023 to the same period last year (Q4 2022), there has been a reduction in DSO from 14.62 days to 12.90 days, which reflects a positive trend in managing accounts receivable. Lower DSO values indicate that the company is collecting payments faster and converting sales into cash more quickly.

However, the DSO has historically fluctuated, reaching highs of 25.97 days in Q1 2022. This suggests that there have been periods of slower collections in the past, which might have been influenced by different factors such as changes in credit terms, customer payment behavior, or economic conditions.

Overall, while the recent decrease in DSO is a positive sign for United Airlines Holdings Inc, it would be important for the company to maintain efficient accounts receivable management practices to ensure a steady cash flow and minimize the risk of bad debts.