Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
American Airlines Group Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial ratios and periods reveal several notable trends over the analyzed quarters.
- Inventory Turnover
-
This ratio exhibits a sharp decline from the first quarter of 2020, dropping from 24.66 to a low of 7.74 by March 2021. After this low point, there is a clear and consistent recovery, with the ratio climbing steadily to 23.2 by the third quarter of 2023, indicating improved efficiency in inventory management over time.
- Receivables Turnover
-
Receivables turnover follows a somewhat similar trend, declining significantly from 42.84 in March 2020 to 12.92 by December 2020. Thereafter, it recovers gradually, reaching a relatively stable range above 22 from 2022 onward, peaking at 26.28 in the first quarter of 2023. This suggests enhanced effectiveness in collecting outstanding receivables as time progresses.
- Payables Turnover
-
The payables turnover ratio shows more fluctuation. Initially, it rises from 26.52 in March 2020 to 28.39 in June 2020, then declines sharply to 7.9 by March 2021. It attempts a recovery later in 2021 but remains volatile with values oscillating between roughly 13 and 25 through 2022 and 2023. This variability may reflect changing payment policies or supplier terms over the period.
- Working Capital Turnover
-
Available data for working capital turnover is limited, but the sharp spike to 95.26 at September 2021 stands out. This exceptional increase contrasts with the surrounding periods reporting figures close to 16-17, indicating a possible one-time change or irregularity affecting working capital efficiency during this quarter.
- Average Inventory Processing Period
-
There is a steady increase in the average inventory processing period from 15 days in March 2020 to a peak of 47 days in March 2021. Post-peak, the period shortens consistently to stabilize around 16-17 days by late 2022 and into 2023, implying improved inventory turnover speed after mid-2021.
- Average Receivable Collection Period
-
The receivable collection period increases from 9 days in early 2020 up to 28 days by March 2021, signalling slower collections at the peak of operational disruption. Subsequently, the period decreases steadily and remains stable around 14 to 16 days from the end of 2021 through 2023, reflecting improved cash inflow management.
- Operating Cycle
-
The operating cycle lengthens from 24 days in March 2020 to 75 days in March 2021, representing increased time to convert resources into cash. Thereafter, it declines progressively to approximately 30-31 days by 2023, illustrating enhanced operational efficiency and quicker asset turnover.
- Average Payables Payment Period
-
This period increases from 14 days in March 2020 to a peak of 46 days in March 2021, indicating that the company extended its payment terms or delayed payments during that period. Subsequently, the payables period shortens notably, stabilizing around 15-17 days toward the end of the period analyzed, showing a return to more standard payment cycles.
- Cash Conversion Cycle
-
The cash conversion cycle expands significantly from 10 days in March 2020 to 37 days in December 2020, reflecting slower conversion of investments in inventory and receivables into cash. Following this, it declines steadily, settling between 13 and 16 days from early 2022 into 2023, which indicates improved liquidity management and faster cash flow turnaround.
Turnover Ratios
Average No. Days
Inventory Turnover
American Airlines Group Inc., inventory turnover calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenues | 13,062) | 13,482) | 14,055) | 12,189) | 13,188) | 13,462) | 13,422) | 8,899) | 9,427) | 8,969) | 7,478) | 4,008) | 4,027) | 3,173) | 1,622) | 8,515) | |||||
| Aircraft fuel, spare parts and supplies, net | 2,400) | 2,461) | 2,280) | 2,308) | 2,279) | 2,215) | 2,273) | 2,002) | 1,795) | 1,851) | 1,789) | 1,658) | 1,614) | 1,633) | 1,653) | 1,772) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 22.00 | 21.50 | 23.20 | 22.64 | 21.49 | 20.41 | 17.91 | 17.37 | 16.65 | 13.23 | 10.44 | 7.74 | 10.74 | 15.08 | 20.18 | 24.66 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 149.26 | 146.78 | 143.65 | 146.45 | 146.80 | 150.05 | 150.76 | 150.16 | 143.03 | 135.08 | 127.31 | 120.56 | — | — | — | — | |||||
| Union Pacific Corp. | 32.46 | 31.35 | 33.38 | 34.44 | 33.57 | 30.77 | 29.66 | 31.22 | 35.11 | 31.95 | 29.89 | 29.29 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 34.41 | 34.69 | 39.44 | 40.82 | 40.54 | 36.51 | 30.89 | 27.13 | 25.06 | 20.79 | 16.00 | 11.54 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Inventory turnover
= (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
÷ Aircraft fuel, spare parts and supplies, net
= (13,062 + 13,482 + 14,055 + 12,189)
÷ 2,400 = 22.00
2 Click competitor name to see calculations.
- Operating Revenues
- Operating revenues experienced a significant decline in the second quarter of 2020, dropping sharply from 8,515 million US dollars in the first quarter of 2020 to 1,622 million US dollars, likely reflecting an external shock affecting the business environment. Subsequent quarters throughout 2020 showed a gradual recovery, with revenues increasing to 4,027 million US dollars by year-end. The upward trend continued into 2021, reaching a peak of 9,427 million US dollars in the fourth quarter. In 2022, revenues remained relatively stable at high levels, oscillating between approximately 8,899 million and 13,462 million US dollars. Early 2023 figures indicate a slight downward adjustment compared to mid-2022 peaks, with fluctuations around 13,000 to 14,000 million US dollars but lacking a definitive growth or decline trend.
- Aircraft Fuel, Spare Parts and Supplies, Net
- This expense category demonstrated a mild decrease from 1,772 million US dollars in the first quarter of 2020 to around 1,614 million US dollars by the end of 2020. However, costs began to increase gradually starting in early 2021, climbing from 1,658 million to a peak of 2,461 million US dollars in the third quarter of 2023. A modest decrease was observed in the fourth quarter of 2023 but remained elevated compared to pre-pandemic levels. This upward trend may reflect inflationary pressures or increased operational activity.
- Inventory Turnover
- Inventory turnover ratio displayed a steady decline from a high of 24.66 in the first quarter of 2020 down to 7.74 by the first quarter of 2021. This decline aligns temporally with the revenue drop, indicating slower inventory movement possibly due to reduced operational demand. Starting in the second quarter of 2021, turnover improved significantly, increasing consistently to reach 23.2 by mid-2023, followed by a minor dip to 21.5 and a slight recovery to 22 by the end of 2023. The ratio's movement suggests enhanced inventory management or increased consumption of supplies consistent with the recovering demand.
- Overall Insights
- The data reflect a marked disruption affecting the business in early 2020, with a severe drop in revenues and operational activity. Recovery trends began in mid-2020 across all measured parameters, with operating revenues and inventory turnover ratios moving toward pre-crisis levels by late 2021 and maintaining relative stability subsequently. The increase in aircraft fuel and related supplies expenses in 2022-2023 may reflect both higher operational levels and external cost pressures. The synchronization between revenue recovery and inventory turnover suggests a correlation between demand restoration and operational efficiency. Fluctuations in the latter half of 2023 hint at ongoing market or operational adjustments but do not denote a clear reversal of previous trends.
Receivables Turnover
American Airlines Group Inc., receivables turnover calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenues | 13,062) | 13,482) | 14,055) | 12,189) | 13,188) | 13,462) | 13,422) | 8,899) | 9,427) | 8,969) | 7,478) | 4,008) | 4,027) | 3,173) | 1,622) | 8,515) | |||||
| Accounts receivable, net | 2,026) | 2,021) | 2,073) | 1,989) | 2,138) | 1,991) | 1,835) | 1,537) | 1,505) | 1,332) | 1,249) | 971) | 1,342) | 1,135) | 879) | 1,020) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 26.06 | 26.18 | 25.52 | 26.28 | 22.91 | 22.71 | 22.19 | 22.62 | 19.86 | 18.38 | 14.96 | 13.21 | 12.92 | 21.69 | 37.95 | 42.84 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 8.85 | 8.64 | 8.08 | 8.57 | 7.88 | 7.86 | 7.34 | 7.79 | 6.96 | 6.86 | 6.55 | 6.80 | — | — | — | — | |||||
| Uber Technologies Inc. | 10.95 | 11.98 | 13.59 | 13.16 | 11.47 | 11.77 | 10.39 | 8.65 | 7.16 | 11.13 | 10.67 | 10.04 | — | — | — | — | |||||
| Union Pacific Corp. | 11.63 | 12.48 | 13.56 | 12.82 | 13.15 | 11.90 | 11.42 | 11.57 | 12.66 | 12.63 | 12.34 | 11.99 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 28.30 | 23.94 | 25.39 | 21.47 | 24.96 | 20.03 | 16.07 | 14.05 | 14.81 | 11.62 | 8.14 | 7.63 | — | — | — | — | |||||
| United Parcel Service Inc. | 8.11 | 9.84 | 10.03 | 9.60 | 7.97 | 9.21 | 8.78 | 8.82 | 7.76 | 9.01 | 9.12 | 8.84 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Receivables turnover
= (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
÷ Accounts receivable, net
= (13,062 + 13,482 + 14,055 + 12,189)
÷ 2,026 = 26.06
2 Click competitor name to see calculations.
- Operating Revenues
- Operating revenues exhibited significant volatility between the first quarter of 2020 and the end of 2023. There was a sharp decline from approximately $8.5 billion in March 2020 to a low of around $1.6 billion in June 2020, likely reflecting an extraordinary disruption in operations. Subsequent quarters showed a gradual recovery, with revenues steadily increasing through 2021. By late 2021, operating revenues approached pre-2020 levels, fluctuating roughly between $8.9 billion and $9.4 billion. In 2022 and 2023, revenues demonstrated a continuing upward trend, reaching a peak near $14.1 billion in the second quarter of 2023 before slightly retreating toward the end of 2023. Overall, the data indicates a strong rebound from the 2020 trough, followed by growth beyond initial pre-crisis benchmarks.
- Accounts Receivable, Net
- Accounts receivable showed some initial reduction from $1.0 billion in March 2020 to approximately $879 million in June 2020, mirroring the decline in operating revenues. Afterward, this figure generally trended upward through the entire period, increasing from $879 million in mid-2020 to over $2.0 billion by late 2023. This gradual rise suggests a growing volume of credit extended to customers or possibly extended payment terms. The increase in accounts receivable was relatively steady without marked volatility, indicating consistent operational activity and credit management adjustments to the recovering business environment.
- Receivables Turnover Ratio
- The receivables turnover ratio declined sharply from 42.84 in March 2020 to 12.92 by the end of 2020. This pronounced decrease indicates a substantial slowdown in the collection of receivables, consistent with the operational disruptions and decreased revenues observed during that period. Starting in 2021, the ratio reversed the downward trend and improved progressively, moving from 13.21 in March 2021 to a more stable range around 22 to 26 by 2022 and into 2023. This recovery suggests enhanced effectiveness in managing receivables and faster customer payments as normal business conditions resumed. The steady ratio near the mid-20s in the most recent quarters reflects a return to healthier cash conversion cycles.
Payables Turnover
American Airlines Group Inc., payables turnover calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Operating revenues | 13,062) | 13,482) | 14,055) | 12,189) | 13,188) | 13,462) | 13,422) | 8,899) | 9,427) | 8,969) | 7,478) | 4,008) | 4,027) | 3,173) | 1,622) | 8,515) | |||||
| Accounts payable | 2,353) | 2,123) | 2,406) | 2,455) | 2,149) | 2,117) | 2,733) | 2,546) | 1,772) | 1,835) | 2,172) | 1,624) | 1,196) | 1,077) | 1,175) | 1,648) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | 22.43 | 24.92 | 21.98 | 21.29 | 22.79 | 21.36 | 14.90 | 13.66 | 16.86 | 13.34 | 8.60 | 7.90 | 14.50 | 22.86 | 28.39 | 26.52 | |||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 23.43 | 23.23 | 23.59 | 22.74 | 23.20 | 21.90 | 21.37 | 22.67 | 21.86 | 19.74 | 20.02 | 21.41 | — | — | — | — | |||||
| Uber Technologies Inc. | 28.43 | 27.17 | 30.63 | 29.34 | 27.00 | 22.55 | 18.17 | 13.53 | 10.87 | 24.80 | 15.26 | 23.16 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 14.01 | 12.48 | 12.20 | 12.65 | 13.24 | 11.53 | 9.49 | 9.77 | 9.62 | 9.03 | 6.58 | 5.77 | — | — | — | — | |||||
| United Parcel Service Inc. | 14.35 | 15.59 | 15.81 | 15.69 | 13.36 | 15.02 | 13.96 | 14.04 | 12.93 | 14.65 | 14.09 | 14.20 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Payables turnover
= (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
÷ Accounts payable
= (13,062 + 13,482 + 14,055 + 12,189)
÷ 2,353 = 22.43
2 Click competitor name to see calculations.
The operating revenues demonstrate significant volatility across the quarters presented. The first quarter of 2020 starts with a high value, followed by a dramatic decline in the second quarter of 2020, which is likely indicative of a major disruption affecting the revenue stream. Subsequently, there is a gradual recovery observed through the latter part of 2020 and into 2021, with revenues steadily increasing and peaking at various points. The trend continues with fluctuations, but revenues generally remain at a higher level in 2022 and 2023 compared to the mid-2020 period, suggesting partial or substantial recovery from the initial downturn.
Accounts payable display a somewhat fluctuating pattern with an overall gradual increase over the entire period. Starting at a moderate level in early 2020, payables decrease somewhat in mid-2020 before rising again in the latter half of 2020. This upward trend continues through 2021 and into 2022, reaching peak levels around the early to mid-2022 periods. The latter part of 2022 and early 2023 see a moderate decline followed by some variability, but the amounts remain elevated compared to the early 2020 figures. This pattern may reflect changes in procurement activity, payment terms, or operational scale adjustments over time.
The payables turnover ratio shows a sharp decline from very high values in the early part of 2020 to several of the lowest values recorded in the first half of 2021. This indicates a substantial slowdown in the rate at which payables are settled during that period, possibly aligned with the revenue disruption phase noted earlier. Starting in mid-2021, the turnover ratio begins a recovery trajectory, increasing significantly through the end of 2021 and stabilizing at higher levels through 2022 and 2023. Although some fluctuations persist, the overall pattern suggests improvements in the efficiency of accounts payable management or faster payment cycles as operating conditions normalize.
In summary, the data reflects an initial operational and financial impact coinciding with an external disruption in 2020, followed by a gradual recovery in both revenue generation and accounts payable management efficiency. The volatility observed in operating revenues and payables turnover correlates with the broader challenges faced. The upward trend in accounts payable and the varying turnover rates imply adjustments in working capital management consistent with evolving business conditions throughout the time frame analyzed.
- Operating Revenues
- Experienced a significant drop in early 2020, followed by a steady recovery and fluctuation at generally higher levels through 2021 to 2023.
- Accounts Payable
- Showed variable but overall increasing trends over the period, peaking in 2022 before moderating slightly in 2023.
- Payables Turnover Ratio
- Dipped markedly in early 2021 reflecting slower payment cycles, then recovered and stabilized at higher levels through the latter periods.
Working Capital Turnover
American Airlines Group Inc., working capital turnover calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 13,572) | 16,708) | 18,220) | 17,652) | 15,269) | 17,377) | 18,525) | 17,762) | 17,336) | 19,195) | 22,647) | 18,089) | 11,095) | 12,340) | 13,789) | 7,175) | |||||
| Less: Current liabilities | 22,062) | 24,380) | 24,316) | 24,590) | 21,496) | 21,970) | 22,770) | 21,866) | 19,006) | 18,938) | 21,521) | 17,333) | 16,569) | 16,584) | 18,000) | 19,213) | |||||
| Working capital | (8,490) | (7,672) | (6,096) | (6,938) | (6,227) | (4,593) | (4,245) | (4,104) | (1,670) | 257) | 1,126) | 756) | (5,474) | (4,244) | (4,211) | (12,038) | |||||
| Operating revenues | 13,062) | 13,482) | 14,055) | 12,189) | 13,188) | 13,462) | 13,422) | 8,899) | 9,427) | 8,969) | 7,478) | 4,008) | 4,027) | 3,173) | 1,622) | 8,515) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | 95.26 | 16.60 | 16.97 | — | — | — | — | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 17.94 | 21.22 | 22.52 | 16.22 | 15.35 | 16.74 | 13.05 | 13.06 | 12.13 | 9.67 | 8.17 | 9.27 | — | — | — | — | |||||
| Uber Technologies Inc. | 20.23 | 28.22 | 17.25 | 65.98 | 80.50 | 83.47 | — | 1,646.62 | — | 9.53 | 129.39 | 10.72 | — | — | — | — | |||||
| Union Pacific Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| United Airlines Holdings Inc. | — | — | — | — | 681.14 | 58.21 | 38.43 | 35.17 | 6.98 | 3.24 | 2.21 | 5.72 | — | — | — | — | |||||
| United Parcel Service Inc. | 52.36 | 27.10 | 20.23 | 18.10 | 24.61 | 14.61 | 12.16 | 11.27 | 13.21 | 12.81 | 14.87 | 19.13 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Working capital turnover
= (Operating revenuesQ4 2023
+ Operating revenuesQ3 2023
+ Operating revenuesQ2 2023
+ Operating revenuesQ1 2023)
÷ Working capital
= (13,062 + 13,482 + 14,055 + 12,189)
÷ -8,490 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited a markedly negative value throughout most periods, indicating a consistent deficit. Starting at -12,038 million USD in Q1 2020, the deficit significantly reduced to approximately -4,211 million USD by Q2 2020 and remained around this level through Q3 2020. A slight worsening occurred in Q4 2020 with a value of -5,474 million USD. In Q1 2021, the working capital shifted into positive territory, reaching 756 million USD, followed by a peak of 1,126 million USD in Q2 2021, though it declined sharply thereafter to 257 million USD in Q3 2021 and turned negative again at -1,670 million USD by Q4 2021. The negative trend deepened considerably from 2022 onwards, descending steadily from -4,104 million USD in Q1 2022 to -8,490 million USD by Q4 2023, demonstrating a deteriorating short-term liquidity position in the more recent periods.
- Operating Revenues
- Operating revenues revealed a significant recovery and growth trend over the analyzed quarters. Initial revenues were at 8,515 million USD in Q1 2020 but sharply declined to 1,622 million USD in Q2 2020 due to evident operational disruptions. Revenues gradually recovered, reaching 4,027 million USD by Q4 2020. The upward trend persisted into 2021, climbing from 4,008 million USD in Q1 to 9,427 million USD in Q4, indicating improved business performance. In 2022, revenues remained robust, consistently exceeding 13,000 million USD in two quarters and slightly tapering towards 12,189 million USD in Q1 2023. However, in the latter part of 2023, revenues rose again, peaking at 14,055 million USD in Q2 before decreasing moderately to 13,062 million USD by Q4.
- Working Capital Turnover
- The working capital turnover ratio is available for limited periods in 2021, showing unusually high and fluctuating values: 16.97 in Q2, 16.6 in Q3, and a striking surge to 95.26 in Q4 2021. These elevated ratios suggest an extremely high efficiency in utilizing working capital for generating revenues during this specific timeframe, likely influenced by the transient positive working capital and substantial revenue volumes. However, the absence of this ratio for other periods restricts comprehensive trend analysis.
- Summary Insights
- The analysis reveals a business gradually recovering its revenue base post a significant downturn in early 2020, with operating revenues reaching and exceeding pre-crisis levels by 2022. Conversely, the persistent and worsening negative working capital from 2022 onward indicates rising short-term liquidity challenges, potentially from increased current liabilities or reduced current assets. The brief positive working capital phase in early to mid-2021, accompanied by exceptional turnover ratios, suggests a temporary improvement in short-term financial health and operational efficiency, which was not sustained. Overall, the financial position reveals a robust recovery in revenue generation, but the deterioration in working capital levels cautions about potential liquidity risks that may require strategic attention.
Average Inventory Processing Period
American Airlines Group Inc., average inventory processing period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 22.00 | 21.50 | 23.20 | 22.64 | 21.49 | 20.41 | 17.91 | 17.37 | 16.65 | 13.23 | 10.44 | 7.74 | 10.74 | 15.08 | 20.18 | 24.66 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 17 | 17 | 16 | 16 | 17 | 18 | 20 | 21 | 22 | 28 | 35 | 47 | 34 | 24 | 18 | 15 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 2 | 2 | 3 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | — | — | — | — | |||||
| Union Pacific Corp. | 11 | 12 | 11 | 11 | 11 | 12 | 12 | 12 | 10 | 11 | 12 | 12 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 11 | 11 | 9 | 9 | 9 | 10 | 12 | 13 | 15 | 18 | 23 | 32 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 22.00 = 17
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio experienced a significant decline from 24.66 in the first quarter of 2020 to a low of 7.74 in the first quarter of 2021. This indicates a slower rate at which inventory was sold or used during this period. However, starting from mid-2021, there was a notable recovery, with the ratio steadily increasing to reach 22 by the end of 2023. This trend suggests an improvement in operational efficiency and better inventory management in the latter periods.
- Average Inventory Processing Period
- The average inventory processing period, expressed in number of days, showed an inverse pattern to the inventory turnover ratio. It increased from 15 days in the first quarter of 2020 to a peak of 47 days by the first quarter of 2021, reflecting a longer time to process inventory, which aligns with the reduced turnover rate observed during the same timeframe. Subsequent periods show a gradual reduction in the processing period, stabilizing between 16 to 17 days from early 2023 through the end of the year. This reduction aligns with the improved inventory turnover, indicating increased efficiency in managing inventory.
- Overall Analysis
- The data reveals a period of operational challenge particularly noticeable during 2020 and early 2021, likely reflecting external market or industry disruptions. The company's inventory management efficiency declined during this period, as evidenced by lower turnover and longer processing times. From mid-2021 onwards, there is clear evidence of recovery and optimization, with inventory turnover rising to near pre-2020 levels and processing periods shortening accordingly. These trends likely reflect adjustments in business operations, supply chain management, and demand stabilization over the course of the analyzed timeline.
Average Receivable Collection Period
American Airlines Group Inc., average receivable collection period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 26.06 | 26.18 | 25.52 | 26.28 | 22.91 | 22.71 | 22.19 | 22.62 | 19.86 | 18.38 | 14.96 | 13.21 | 12.92 | 21.69 | 37.95 | 42.84 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 14 | 14 | 14 | 14 | 16 | 16 | 16 | 16 | 18 | 20 | 24 | 28 | 28 | 17 | 10 | 9 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 41 | 42 | 45 | 43 | 46 | 46 | 50 | 47 | 52 | 53 | 56 | 54 | — | — | — | — | |||||
| Uber Technologies Inc. | 33 | 30 | 27 | 28 | 32 | 31 | 35 | 42 | 51 | 33 | 34 | 36 | — | — | — | — | |||||
| Union Pacific Corp. | 31 | 29 | 27 | 28 | 28 | 31 | 32 | 32 | 29 | 29 | 30 | 30 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 13 | 15 | 14 | 17 | 15 | 18 | 23 | 26 | 25 | 31 | 45 | 48 | — | — | — | — | |||||
| United Parcel Service Inc. | 45 | 37 | 36 | 38 | 46 | 40 | 42 | 41 | 47 | 40 | 40 | 41 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 26.06 = 14
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibited a notable decline from the first quarter of 2020 through the end of 2020, decreasing from approximately 42.84 to 12.92. This suggests a significant slowing in the frequency of receivables collection during this period. Starting in 2021, the ratio gradually improved, moving upwards from 13.21 in March to 19.86 by the end of 2021. The upward trajectory continued through 2022 and into 2023, stabilizing around the mid-20s range by the final quarter of 2023, specifically near 26. This recovery indicates enhanced efficiency in collecting receivables over time after the initial downturn.
- Average Receivable Collection Period
- The average receivable collection period provides an inverse perspective on the receivables turnover ratio. Initially, this metric increased from 9 days at the start of 2020 to a peak of 28 days by the end of 2020, indicating a slower collection cycle. From early 2021 onward, the collection period shortened progressively, falling from 28 days in March 2021 to 18 days by December 2021. In 2022 and 2023, the collection period stabilized at approximately 14 to 16 days, reflecting more consistent and timely collection practices during these years.
- Overall Trend Analysis
- The data reflects a significant disruption during 2020 with slowing receivables collection efficiency, likely influenced by external or industry-wide factors affecting cash flow and credit management. However, from 2021 onward, there is a clear recovery and gradual improvement in both the turnover ratio and collection period metrics. By late 2023, the company demonstrates a solid return to pre-disturbance levels of receivables management efficiency, suggesting strengthened operational control over credit and collections processes.
Operating Cycle
American Airlines Group Inc., operating cycle calculation (quarterly data)
No. days
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 17 | 17 | 16 | 16 | 17 | 18 | 20 | 21 | 22 | 28 | 35 | 47 | 34 | 24 | 18 | 15 | |||||
| Average receivable collection period | 14 | 14 | 14 | 14 | 16 | 16 | 16 | 16 | 18 | 20 | 24 | 28 | 28 | 17 | 10 | 9 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 31 | 31 | 30 | 30 | 33 | 34 | 36 | 37 | 40 | 48 | 59 | 75 | 62 | 41 | 28 | 24 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 43 | 44 | 48 | 45 | 48 | 48 | 52 | 49 | 55 | 56 | 59 | 57 | — | — | — | — | |||||
| Union Pacific Corp. | 42 | 41 | 38 | 39 | 39 | 43 | 44 | 44 | 39 | 40 | 42 | 42 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 24 | 26 | 23 | 26 | 24 | 28 | 35 | 39 | 40 | 49 | 68 | 80 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 17 + 14 = 31
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in the management of inventory, receivables, and the overall operating cycle over the evaluated periods.
- Average Inventory Processing Period
- This metric shows a noticeable increase from 15 days at the beginning of 2020 to a peak of 47 days by the first quarter of 2021. Following this peak, a steady reduction is observed, bringing the period down to around 16-17 days in the latter quarters of 2023. This pattern indicates an initial slowdown likely due to external disruptions, followed by efforts to enhance inventory turnover and efficiency.
- Average Receivable Collection Period
- The receivable collection period also lengthened from 9 days in early 2020 to a high of 28 days in the first quarter of 2021. Subsequently, this period gradually decreases and stabilizes at approximately 14 days for the last eight quarters, suggesting improved credit and collection policies or better customer payment behavior over time.
- Operating Cycle
- The operating cycle, which combines the inventory processing period and receivable collection period, correspondingly extended from 24 days in March 2020 to a peak of 75 days in the first quarter of 2021. After this peak, it progressively shortens to roughly 30-31 days towards the end of 2023. This reduction reflects enhanced operational efficiency, quicker inventory turnover, and accelerated cash collection.
Overall, the company's operational signs point to initial strain likely linked to external shocks during the early 2020 period, followed by marked improvements in asset management and liquidity management over the subsequent quarters. The consistent reduction in both inventory and receivables turnover periods contributes to a more efficient operating cycle, potentially supporting improved cash flow and working capital utilization.
Average Payables Payment Period
American Airlines Group Inc., average payables payment period calculation (quarterly data)
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | 22.43 | 24.92 | 21.98 | 21.29 | 22.79 | 21.36 | 14.90 | 13.66 | 16.86 | 13.34 | 8.60 | 7.90 | 14.50 | 22.86 | 28.39 | 26.52 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | 16 | 15 | 17 | 17 | 16 | 17 | 24 | 27 | 22 | 27 | 42 | 46 | 25 | 16 | 13 | 14 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 16 | 16 | 15 | 16 | 16 | 17 | 17 | 16 | 17 | 18 | 18 | 17 | — | — | — | — | |||||
| Uber Technologies Inc. | 13 | 13 | 12 | 12 | 14 | 16 | 20 | 27 | 34 | 15 | 24 | 16 | — | — | — | — | |||||
| United Airlines Holdings Inc. | 26 | 29 | 30 | 29 | 28 | 32 | 38 | 37 | 38 | 40 | 55 | 63 | — | — | — | — | |||||
| United Parcel Service Inc. | 25 | 23 | 23 | 23 | 27 | 24 | 26 | 26 | 28 | 25 | 26 | 26 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 22.43 = 16
2 Click competitor name to see calculations.
The analysis of the payables turnover ratio and average payables payment period over the observed quarters reveals notable trends in the company's payment management practices.
- Payables Turnover Ratio
- The payables turnover ratio shows significant fluctuation across the quarters. It started relatively high at 26.52 in the first quarter of 2020 and peaked at 28.39 in the following quarter. However, there was a marked decline through the remainder of 2020, reaching a low of 7.9 by the first quarter of 2021. Post this low point, the ratio gradually improved, with values rising steadily through 2021 and 2022, reaching around the 21 to 24 range in the latter quarters, and slightly stabilizing at approximately 22 to 25 in 2023. This pattern suggests an initial quick turnover of payables, a slowdown during 2020 and early 2021, followed by a recovery to stronger payment activity in subsequent periods.
- Average Payables Payment Period
- The average payables payment period displays an inverse relationship to the payables turnover ratio, as expected. It started at 14 days in early 2020, then increased moderately to 25 days by the end of 2020, indicating slower payments to suppliers. The period extended significantly in early 2021, peaking at 46 days, illustrating a deliberate lengthening of payment terms or delays. After this peak, there was a steady reduction in days, signifying quicker payments, dropping back to the mid-teens by late 2022 and remaining relatively stable around 15 to 17 days through 2023.
Overall, the data reflects a strategy that involved lengthening the payment period during the height of economic disruption around 2020 and early 2021, likely as a liquidity management measure. Subsequently, from mid-2021 onwards, there was a clear shift toward faster payment of payables, indicating an improvement in cash flow conditions or supplier relationship management. The current levels suggest a return to more normalized payment cycles compared to the early pandemic period.
Cash Conversion Cycle
American Airlines Group Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 17 | 17 | 16 | 16 | 17 | 18 | 20 | 21 | 22 | 28 | 35 | 47 | 34 | 24 | 18 | 15 | |||||
| Average receivable collection period | 14 | 14 | 14 | 14 | 16 | 16 | 16 | 16 | 18 | 20 | 24 | 28 | 28 | 17 | 10 | 9 | |||||
| Average payables payment period | 16 | 15 | 17 | 17 | 16 | 17 | 24 | 27 | 22 | 27 | 42 | 46 | 25 | 16 | 13 | 14 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 15 | 16 | 13 | 13 | 17 | 17 | 12 | 10 | 18 | 21 | 17 | 29 | 37 | 25 | 15 | 10 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| FedEx Corp. | 27 | 28 | 33 | 29 | 32 | 31 | 35 | 33 | 38 | 38 | 41 | 40 | — | — | — | — | |||||
| United Airlines Holdings Inc. | -2 | -3 | -7 | -3 | -4 | -4 | -3 | 2 | 2 | 9 | 13 | 17 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 17 + 14 – 16 = 15
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited an increasing trend during the first half of 2020, rising from 15 days in March to a peak of 47 days in March 2021. After this peak, the period declined steadily, reaching 16 to 17 days by the end of 2023. This indicates an initial slowdown in inventory turnover followed by improved efficiency in managing inventory levels over the subsequent periods.
- Average Receivable Collection Period
- The receivable collection period increased in 2020, from 9 days in March to 28 days by March 2021, suggesting extended customer payment times during the early pandemic period. From mid-2021 onwards, the period decreased and stabilized at around 14 to 16 days through 2022 and 2023, reflecting improved or normalized credit and collection practices.
- Average Payables Payment Period
- The average payables payment period rose significantly in the first half of 2021, reaching 46 days in March 2021, compared to 14 days in March 2020. After this peak, the payment period gradually decreased, settling between 15 and 17 days during 2023. This pattern suggests that accounts payable management was extended during the pandemic’s impact but then returned closer to pre-pandemic levels.
- Cash Conversion Cycle
- The cash conversion cycle increased from 10 days in March 2020 to a peak of 37 days in December 2020, indicating a longer duration to convert resource inputs into cash inflows. Following this peak, it decreased and stabilized between 13 and 16 days across 2022 and 2023, demonstrating improved operational cash flow management and enhanced liquidity efficiency in recent periods.