United Airlines Holdings Inc (UAL)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	51,951,000	43,302,000	23,067,000	13,673,000	42,560,000
Receivables	US$ in thousands	1,898,000	1,801,000	1,663,000	1,295,000	1,364,000
Receivables turnover		27.37	24.04	13.87	10.56	31.20

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $51,951,000K ÷ $1,898,000K
= 27.37

United Airlines Holdings Inc's receivables turnover has shown fluctuating trends over the past five years. The ratio has increased steadily from 11.86 in 2020 to 28.30 in 2023, indicating that the company is collecting its accounts receivable more efficiently. The significant improvement from 2020 to 2023 suggests that United Airlines has been more successful in converting its credit sales into cash during the most recent year.

The overall pattern of the receivables turnover indicates that United Airlines has been managing its accounts receivable effectively, especially in 2019 and 2023 when the ratio was relatively high. This may be attributed to the company's effective credit policies, efficient collection processes, and potentially better customer payment behavior.

However, the lower receivables turnover ratios in 2020 and 2021 compared to the other years suggest that the company may have experienced challenges in collecting its receivables efficiently during those periods, which could be influenced by various factors such as economic conditions, industry trends, or changes in customer creditworthiness.

In conclusion, the increasing trend in United Airlines Holdings Inc's receivables turnover indicates an improvement in the company's ability to collect outstanding receivables, reflecting positively on its liquidity and operational efficiency.