Stock Analysis on Net

Delta Air Lines Inc. (NYSE:DAL)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 13.11 14.61 15.93 18.43 13.06
Receivables turnover 12.44 12.25 16.47 19.20 17.35
Payables turnover 3.40 3.77 6.10 6.53 4.72
Working capital turnover 11.57
Average No. Days
Average inventory processing period 28 25 23 20 28
Add: Average receivable collection period 29 30 22 19 21
Operating cycle 57 55 45 39 49
Less: Average payables payment period 108 97 60 56 77
Cash conversion cycle -51 -42 -15 -17 -28

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Delta Air Lines Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Delta Air Lines Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Delta Air Lines Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.

Short-term activity 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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Delta Air Lines Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Delta Air Lines Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.
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. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.
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. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of operating revenue 14,395  10,695  19,931  19,442  17,358 
Inventories 1,098  732  1,251  1,055  1,329 
Short-term Activity Ratio
Inventory turnover1 13.11 14.61 15.93 18.43 13.06
Benchmarks
Inventory Turnover, Competitors2
American Airlines Group Inc. 16.65 10.74 24.73 29.26 31.06
CSX Corp. 36.94 35.04 45.74 46.58 30.67
FedEx Corp. 143.03 121.01 126.03 124.67 117.35
Union Pacific Corp. 35.11 30.62 28.91 30.77 28.36
United Airlines Holdings Inc. 25.06 16.48 40.35 41.93 40.84
United Parcel Service Inc. 135.69 136.50 145.00 170.69 163.05
Inventory Turnover, Sector
Transportation 46.33 42.02 45.82 50.37 45.33
Inventory Turnover, Industry
Industrials 4.29 3.85 4.68 5.28 5.67

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Inventory turnover = Cost of operating revenue ÷ Inventories
= 14,395 ÷ 1,098 = 13.11

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Delta Air Lines Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating revenue 29,899  17,095  47,007  44,438  41,244 
Accounts receivable, net of an allowance for uncollectible accounts 2,404  1,396  2,854  2,314  2,377 
Short-term Activity Ratio
Receivables turnover1 12.44 12.25 16.47 19.20 17.35
Benchmarks
Receivables Turnover, Competitors2
American Airlines Group Inc. 19.86 12.92 26.15 26.11 24.09
CSX Corp. 10.91 11.60 12.11 12.13 11.76
FedEx Corp. 6.96 6.85 7.65 7.72 7.94
Union Pacific Corp. 12.66 12.98 13.61 13.01 14.23
United Airlines Holdings Inc. 14.81 11.86 31.71 30.69 28.16
United Parcel Service Inc. 7.76 7.87 7.76 8.02 7.51
Receivables Turnover, Sector
Transportation 9.08 8.56 11.52 11.84 11.52
Receivables Turnover, Industry
Industrials 8.27 7.83 8.86 8.88 7.04

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Operating revenue ÷ Accounts receivable, net of an allowance for uncollectible accounts
= 29,899 ÷ 2,404 = 12.44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Delta Air Lines Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Payables Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of operating revenue 14,395  10,695  19,931  19,442  17,358 
Accounts payable 4,240  2,840  3,266  2,976  3,674 
Short-term Activity Ratio
Payables turnover1 3.40 3.77 6.10 6.53 4.72
Benchmarks
Payables Turnover, Competitors2
American Airlines Group Inc. 16.86 14.50 22.20 25.12 25.00
CSX Corp. 13.00 13.08 11.44 12.91 13.47
FedEx Corp. 21.86 21.17 23.00 21.99 21.92
Union Pacific Corp. 28.99 31.92 28.98 26.18 20.97
United Airlines Holdings Inc. 9.62 9.63 16.00 17.48 17.18
United Parcel Service Inc. 12.93 13.11 13.34 13.85 17.01
Payables Turnover, Sector
Transportation 13.14 13.55 15.56 16.24 15.97
Payables Turnover, Industry
Industrials 7.94 7.51 8.07 8.38 8.47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of operating revenue ÷ Accounts payable
= 14,395 ÷ 4,240 = 3.40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Delta Air Lines Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 15,940  17,404  8,249  6,340  7,844 
Less: Current liabilities 20,966  15,927  20,204  18,578  18,573 
Working capital (5,026) 1,477  (11,955) (12,238) (10,729)
 
Operating revenue 29,899  17,095  47,007  44,438  41,244 
Short-term Activity Ratio
Working capital turnover1 11.57
Benchmarks
Working Capital Turnover, Competitors2
American Airlines Group Inc.
CSX Corp. 7.64 4.37 10.59 18.85 543.24
FedEx Corp. 12.13 11.46 17.11 17.62 12.81
Union Pacific Corp. 476.41 317.01
United Airlines Holdings Inc. 6.98 7.40
United Parcel Service Inc. 13.21 26.45 43.84 33.85 23.19
Working Capital Turnover, Sector
Transportation 28.39 23.90
Working Capital Turnover, Industry
Industrials 7.75 4.98 36.24 60.50 18.23

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Operating revenue ÷ Working capital
= 29,899 ÷ -5,026 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 13.11 14.61 15.93 18.43 13.06
Short-term Activity Ratio (no. days)
Average inventory processing period1 28 25 23 20 28
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
American Airlines Group Inc. 22 34 15 12 12
CSX Corp. 10 10 8 8 12
FedEx Corp. 3 3 3 3 3
Union Pacific Corp. 10 12 13 12 13
United Airlines Holdings Inc. 15 22 9 9 9
United Parcel Service Inc. 3 3 3 2 2
Average Inventory Processing Period, Sector
Transportation 8 9 8 7 8
Average Inventory Processing Period, Industry
Industrials 85 95 78 69 64

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 13.11 = 28

2 Click competitor name to see calculations.

Short-term activity 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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 12.44 12.25 16.47 19.20 17.35
Short-term Activity Ratio (no. days)
Average receivable collection period1 29 30 22 19 21
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
American Airlines Group Inc. 18 28 14 14 15
CSX Corp. 33 31 30 30 31
FedEx Corp. 52 53 48 47 46
Union Pacific Corp. 29 28 27 28 26
United Airlines Holdings Inc. 25 31 12 12 13
United Parcel Service Inc. 47 46 47 45 49
Average Receivable Collection Period, Sector
Transportation 40 43 32 31 32
Average Receivable Collection Period, Industry
Industrials 44 47 41 41 52

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 12.44 = 29

2 Click competitor name to see calculations.

Short-term activity 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. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 28 25 23 20 28
Average receivable collection period 29 30 22 19 21
Short-term Activity Ratio
Operating cycle1 57 55 45 39 49
Benchmarks
Operating Cycle, Competitors2
American Airlines Group Inc. 40 62 29 26 27
CSX Corp. 43 41 38 38 43
FedEx Corp. 55 56 51 50 49
Union Pacific Corp. 39 40 40 40 39
United Airlines Holdings Inc. 40 53 21 21 22
United Parcel Service Inc. 50 49 50 47 51
Operating Cycle, Sector
Transportation 48 52 40 38 40
Operating Cycle, Industry
Industrials 129 142 119 110 116

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 28 + 29 = 57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Delta Air Lines Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 3.40 3.77 6.10 6.53 4.72
Short-term Activity Ratio (no. days)
Average payables payment period1 108 97 60 56 77
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
American Airlines Group Inc. 22 25 16 15 15
CSX Corp. 28 28 32 28 27
FedEx Corp. 17 17 16 17 17
Union Pacific Corp. 13 11 13 14 17
United Airlines Holdings Inc. 38 38 23 21 21
United Parcel Service Inc. 28 28 27 26 21
Average Payables Payment Period, Sector
Transportation 28 27 23 22 23
Average Payables Payment Period, Industry
Industrials 46 49 45 44 43

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.40 = 108

2 Click competitor name to see calculations.

Short-term activity 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. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 28 25 23 20 28
Average receivable collection period 29 30 22 19 21
Average payables payment period 108 97 60 56 77
Short-term Activity Ratio
Cash conversion cycle1 -51 -42 -15 -17 -28
Benchmarks
Cash Conversion Cycle, Competitors2
American Airlines Group Inc. 18 37 13 11 12
CSX Corp. 15 13 6 10 16
FedEx Corp. 38 39 35 33 32
Union Pacific Corp. 26 29 27 26 22
United Airlines Holdings Inc. 2 15 -2 0 1
United Parcel Service Inc. 22 21 23 21 30
Cash Conversion Cycle, Sector
Transportation 20 25 17 16 17
Cash Conversion Cycle, Industry
Industrials 83 93 74 66 73

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 28 + 29108 = -51

2 Click competitor name to see calculations.

Short-term activity 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. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.