United Airlines Holdings Inc (UAL)

Cash conversion cycle

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	14.37	12.79	13.22	14.12	14.04	14.76	12.90	12.03	11.80	12.58	14.19	14.90	15.00	15.99	16.76	18.34	16.69	14.96	12.98	12.71
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	14.37	12.79	13.22	14.12	14.04	14.76	12.90	12.03	11.80	12.58	14.19	14.90	15.00	15.99	16.76	18.34	16.69	14.96	12.98	12.71

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 14.37 + — – —
= 14.37

The cash conversion cycle for United Airlines Holdings Inc shows a fluctuating trend over the analyzed periods, ranging from 11.80 days to 18.34 days. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

The company's cash conversion cycle has generally been decreasing since the peak observed in March 2021, which indicates an improvement in the efficiency of United Airlines Holdings Inc in managing its working capital. A lower cash conversion cycle suggests that the company is able to generate cash from its operations more quickly, potentially leading to improved liquidity and financial health.

However, there was a slight increase in the cash conversion cycle from March 31, 2024, to June 30, 2024, highlighting a possible slowdown in the company's working capital management efficiency during that period. It would be important for United Airlines Holdings Inc to monitor and address any factors contributing to this increase to ensure optimal cash flow operations in the future.

Overall, the decreasing trend in the cash conversion cycle for United Airlines Holdings Inc indicates a positive direction in terms of working capital management efficiency, but the company should remain vigilant and responsive to any fluctuations to maintain strong financial performance.