Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

Delta Air Lines Inc., short-term (operating) activity ratios

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Delta Air Lines Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Delta Air Lines Inc.’s receivables turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Delta Air Lines Inc.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Delta Air Lines Inc.’s average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Delta Air Lines Inc.’s cash conversion cycle improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Delta Air Lines Inc., inventory turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Cost of operating revenue
	Inventories
	Ratio
	Inventory turnover¹
	Benchmarks
	Inventory Turnover, Competitors
	McDonald’s Corp.
	Starbucks Corp.
	Inventory Turnover, Sector
	Travel & Leisure
	Inventory Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Inventory turnover = Cost of operating revenue ÷ Inventories
= hidden ÷ hidden = hidden

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Delta Air Lines Inc.’s inventory turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Delta Air Lines Inc., receivables turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Operating revenue
	Accounts receivable, net of an allowance for uncollectible accounts
	Ratio
	Receivables turnover¹
	Benchmarks
	Receivables Turnover, Competitors
	Booking Holdings Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	Receivables Turnover, Sector
	Travel & Leisure
	Receivables Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Receivables turnover = Operating revenue ÷ Accounts receivable, net of an allowance for uncollectible accounts
= hidden ÷ hidden = hidden

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Delta Air Lines Inc.’s receivables turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

Delta Air Lines Inc., payables turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Cost of operating revenue
	Accounts payable
	Ratio
	Payables turnover¹
	Benchmarks
	Payables Turnover, Competitors
	Booking Holdings Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	Payables Turnover, Sector
	Travel & Leisure
	Payables Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Payables turnover = Cost of operating revenue ÷ Accounts payable
= hidden ÷ hidden = hidden

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Delta Air Lines Inc.’s payables turnover declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Delta Air Lines Inc., working capital turnover calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in millions)
	Current assets
	Less: Current liabilities
	Working capital
	Operating revenue
	Ratio
	Working capital turnover¹
	Benchmarks
	Working Capital Turnover, Competitors
	Booking Holdings Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	Working Capital Turnover, Sector
	Travel & Leisure
	Working Capital Turnover, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Working capital turnover = Operating revenue ÷ Working capital
= hidden ÷ hidden = hidden

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.

Delta Air Lines Inc., average inventory processing period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Inventory turnover
	Ratio (no. of days)
	Average inventory processing period¹
	Benchmarks (no. of days)
	Average Inventory Processing Period, Competitors
	McDonald’s Corp.
	Starbucks Corp.
	Average Inventory Processing Period, Sector
	Travel & Leisure
	Average Inventory Processing Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Delta Air Lines Inc., average receivable collection period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹
	Benchmarks (no. of days)
	Average Receivable Collection Period, Competitors
	Booking Holdings Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	Average Receivable Collection Period, Sector
	Travel & Leisure
	Average Receivable Collection Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.

Delta Air Lines Inc., operating cycle calculation, comparison to benchmarks

No. of days

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Ratio
	Operating cycle¹
	Benchmarks
	Operating Cycle, Competitors
	McDonald’s Corp.
	Starbucks Corp.
	Operating Cycle, Sector
	Travel & Leisure
	Operating Cycle, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= hidden + hidden = hidden

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.

Delta Air Lines Inc., average payables payment period calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹
	Benchmarks (no. of days)
	Average Payables Payment Period, Competitors
	Booking Holdings Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	Average Payables Payment Period, Sector
	Travel & Leisure
	Average Payables Payment Period, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ hidden = hidden

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Delta Air Lines Inc.’s average payables payment period increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Delta Air Lines Inc., cash conversion cycle calculation, comparison to benchmarks

No. of days

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Ratio
	Cash conversion cycle¹
	Benchmarks
	Cash Conversion Cycle, Competitors
	McDonald’s Corp.
	Starbucks Corp.
	Cash Conversion Cycle, Sector
	Travel & Leisure
	Cash Conversion Cycle, Industry
	Consumer Services

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

2018 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= hidden + hidden – hidden = hidden

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Delta Air Lines Inc.’s cash conversion cycle improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

	Delta Air Lines Inc.	Other companies (not purchased previously)
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Delta Air Lines Inc. (DAL)

Short-term (Operating) Activity Analysis

Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle