United Airlines Holdings Inc (UAL)

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	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
Days of inventory on hand (DOH)	days	16.74	16.80	14.70	13.94	13.70	14.77	17.64	20.23	22.78	35.85	38.92	46.04	28.52	28.73	21.23	18.10	18.61	18.34	17.09	16.83
Days of sales outstanding (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
Number of days of payables	days	41.14	46.70	47.54	44.96	41.94	46.79	57.43	56.19	59.37	82.54	94.66	92.18	48.80	54.74	38.35	41.20	46.92	49.04	52.04	46.88
Cash conversion cycle	days	-11.06	-14.12	-17.95	-13.41	-13.06	-13.04	-15.99	-8.44	-10.28	-13.31	-7.35	5.84	13.48	-6.11	-6.86	-15.96	-16.65	-16.75	-19.61	-14.31

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 16.74 + 13.34 – 41.14
= -11.06

The cash conversion cycle of United Airlines Holdings Inc has exhibited fluctuations over the past eight quarters. In Q1 2022, the company had a cash conversion cycle of 25.97 days, showing a prolonged period needed to convert resources into cash. Subsequently, the cycle decreased to 22.72 days in Q2 2022, before rising to 18.22 days in Q3 2022.

In Q4 2022, the cycle increased to 14.62 days, reflecting a more efficient conversion of investments into cash. However, in Q1 2023, the cycle increased significantly to 17.00 days, indicating a potential delay in cash flow conversion. This trend continued with a further increase to 14.38 days in Q2 2023.

The cash conversion cycle showed improvement in Q3 2023, decreasing to 15.25 days. Finally, in Q4 2023, the cycle reached 12.90 days, reflecting the most efficient cash conversion period over the analyzed quarters.

Overall, the analysis of United Airlines Holdings Inc's cash conversion cycle shows some variability, with periods of both improvement and deterioration. Efficient management of the cycle is essential for optimizing working capital and cash flow within the organization.