United Airlines Holdings Inc (UAL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 15.24 | 14.79 | 11.80 | 15.00 | 16.69 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 15.24 | 14.79 | 11.80 | 15.00 | 16.69 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 15.24 + — – —
= 15.24
The cash conversion cycle of United Airlines Holdings Inc has shown a decreasing trend over the past five years, starting at 16.69 days as of December 31, 2020, and reaching its lowest point at 11.80 days as of December 31, 2022. This indicates the company has been able to manage its cash flow more efficiently, potentially by reducing the time it takes to convert its investments in inventory and accounts receivable into cash. However, there was a slight uptick in the cash conversion cycle to 14.79 days as of December 31, 2023, followed by a slight increase to 15.24 days as of December 31, 2024. Overall, a lower cash conversion cycle is generally positive as it suggests the company is able to generate cash quickly from its operating activities, which can improve liquidity and financial performance.
Peer comparison
Dec 31, 2024