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.
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Short-term Activity Ratios (Summary)
Delta Air Lines Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Inventory Turnover
- The inventory turnover ratio exhibited moderate fluctuation over the observed periods. Starting at 13.06 in March 2017, it reached a peak near 20.15 in June 2020 before gradually declining to around 10.83 by June 2022. This trend suggests an initial improvement in inventory management and sales efficiency up to mid-2020, followed by a steady slowdown in the turnover rate thereafter.
- Receivables Turnover
- The receivables turnover showed notable volatility, with values ranging from a low near 6.89 in June 2021 to a high of 24.77 in September 2020. The sharp increases in late 2020 and early 2021 were followed by a reduction through mid-2022, indicating fluctuations in the effectiveness of receivables collection processes. A substantial dip in mid-2021 points to slower collection periods during this time.
- Payables Turnover
- Payables turnover ratios generally decreased over the timeframe. From an initial level around 4.72 in March 2017, it reached peaks around 6.97 in September 2020 but then declined significantly to the low threes by mid-2022. This downward trend indicates lengthening in the company's payment cycles to suppliers over time.
- Working Capital Turnover
- Data for working capital turnover are sparse, with available figures showing a noteworthy increase from 4.63 in December 2020 to 11.57 in March 2021, suggesting a temporary improvement in the efficiency of working capital utilization. However, lack of consistent data limits the ability to discern long-term patterns.
- Average Inventory Processing Period
- The average inventory processing period remained relatively stable with some fluctuations, ranging from approximately 18 to 34 days. The period was shortest around mid-2020 and increased towards mid-2021, peaking near 34 days, signaling variations in the speed of inventory turnover over time.
- Average Receivable Collection Period
- This metric displayed considerable variation, with days outstanding increasing sharply from around 15–22 days in early 2020 to a peak of 53 days in March 2021. Subsequent quarters saw a gradual reduction to about 27 days by mid-2022. The spike suggests difficulties in collections during early 2021, potentially due to external disruptions.
- Operating Cycle
- The operating cycle lengthened significantly during early 2021, reaching upwards of 86 days in March 2021 from typical levels in the 40–50 day range prior to 2020. It then shortened gradually but remained elevated above pre-2020 levels through mid-2022, indicating a slower overall conversion of inventory and receivables into cash.
- Average Payables Payment Period
- The payables payment period extended notably over the entire period. Initial figures near 60-77 days before 2019 were followed by increases up to 137 days by March 2021. The payment period then moderately decreased but remained above 100 days through mid-2022. This trend highlights a strategic lengthening of payment terms or delayed payments during and after the peak pandemic periods.
- Cash Conversion Cycle
- The cash conversion cycle maintained negative values consistently, indicating that the company was able to delay payments beyond the time taken to collect receivables and turn over inventory. The cycle improved (became more negative) from about -15 days in early 2019 to roughly -53 days in late 2021 and early 2022, reflecting increasingly favorable liquidity management. The trend somewhat reversed towards mid-2022, showing a slight reduction in this advantage.
Turnover Ratios
Average No. Days
Inventory Turnover
Delta Air Lines Inc., inventory turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of operating revenue | |||||||||||||||||||||||||||||
| Fuel, expendable parts and supplies inventories, net of allowance for obsolescence | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Inventory turnover
= (Cost of operating revenueQ2 2022
+ Cost of operating revenueQ1 2022
+ Cost of operating revenueQ4 2021
+ Cost of operating revenueQ3 2021)
÷ Fuel, expendable parts and supplies inventories, net of allowance for obsolescence
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Operating Revenue
- The cost of operating revenue generally increased from March 2017 through June 2019, rising from approximately 4,060 million USD to a peak near 5,163 million USD in September 2019, followed by a slight decline towards the end of 2019. A sharp decrease is observed starting in the first quarter of 2020, with costs dropping significantly in the second quarter of 2020 to 1,790 million USD, likely reflecting external disruptions impacting operations. After this trough, there is a consistent upward trend through the rest of 2020 and into 2022, culminating at around 6,106 million USD by June 2022, which surpasses pre-2020 levels and indicates a recovery and escalation in operating costs.
- Fuel, Expendable Parts, and Supplies Inventories, Net of Allowance for Obsolescence
- Inventory values show fluctuations across the periods under review. Initial figures around 855 million USD in early 2017 increase to a notable peak of 1,589 million USD in mid-2018, followed by declines and stable readings around 1,070 to 1,250 million USD through late 2019. A marked decline in inventories appears in the first half of 2020, reaching a low near 732 million USD in the fourth quarter of 2020. From then, inventories demonstrate a recovery trend, growing steadily and reaching a new high of approximately 1,734 million USD by June 2022. This pattern suggests cautious inventory management during downturn periods with subsequent rebuilding concurrent with operational recovery.
- Inventory Turnover Ratio
- Data is partially available, beginning with a turnover ratio of 13.06 in March 2017 and showing variability over subsequent periods. Notable increases are seen during mid-2017 and mid-2018, with peak turnover ratios around 20.15 in June 2020. After this peak, turnover ratios decline gradually, stabilizing between approximately 10.83 and 13.11 in the later periods through mid-2022. The elevated inventory turnover during 2020 suggests heightened efficiency or inventory drawdown during the challenging period, while subsequent normalization aligns with inventory replenishment and operational scaling.
Receivables Turnover
Delta Air Lines Inc., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating revenue | |||||||||||||||||||||||||||||
| Accounts receivable, net of an allowance for uncollectible accounts | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Receivables turnover
= (Operating revenueQ2 2022
+ Operating revenueQ1 2022
+ Operating revenueQ4 2021
+ Operating revenueQ3 2021)
÷ Accounts receivable, net of an allowance for uncollectible accounts
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Operating Revenue Trend
- Operating revenue displayed a generally increasing trend from March 2017 to December 2019, rising from 9,148 million US dollars to a peak of 12,560 million US dollars in September 2019. This growth was interrupted by a sharp decline starting in March 2020, coinciding with the onset of the COVID-19 pandemic. Revenue dropped dramatically to 1,468 million US dollars in June 2020, the lowest in the period analyzed. A gradual recovery followed, with values increasing each quarter through June 2022, reaching 13,824 million US dollars, surpassing pre-pandemic levels.
- Accounts Receivable, Net Trend
- The net accounts receivable experienced fluctuations over the analyzed period. Initially, values were relatively stable, hovering around 2,300 million US dollars from March 2017 to December 2018. A notable increase occurred in March 2019, peaking at 3,154 million US dollars, followed by a slight decline and stabilization around the 2,800 to 3,000 million US dollars range until March 2020. A decline ensued in the second and third quarters of 2020, reflecting reduced business activity, with values dropping to 1,375 million US dollars in June 2020. Subsequently, a steady increase resumed, reaching 3,093 million US dollars by June 2022.
- Receivables Turnover Ratio Trend
- The receivables turnover ratio demonstrated variability throughout the period. Data are available from March 2018 onward. The ratio fluctuated between 14.25 and 19.79 in 2018 and 2019, indicating consistent efficiency in collecting receivables during this time. In 2020, the ratio peaked at 24.77 in June, likely benefiting from lower receivables balances, but then declined sharply to a low of 6.89 in March 2021, reflecting decreased turnover efficiency during the height of the pandemic impact. Improvement in this ratio was observed thereafter, increasing steadily to 13.51 by June 2022.
- Summary of Observations
- The financial data reveal significant disruption due to the COVID-19 pandemic beginning in early 2020, evidenced by steep declines in operating revenue and accounts receivable, coupled with volatility in receivables turnover. Recovery commenced in mid-2020 with a gradual return to and eventual surpassing of pre-pandemic revenue levels by mid-2022. Accounts receivable mirrored this pattern, initially declining, then recovering to prior levels. The receivables turnover ratio's volatility suggests challenges in collection efficiency during the pandemic, with gradual normalization in the recovery phase.
Payables Turnover
Delta Air Lines Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cost of operating revenue | |||||||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Payables turnover
= (Cost of operating revenueQ2 2022
+ Cost of operating revenueQ1 2022
+ Cost of operating revenueQ4 2021
+ Cost of operating revenueQ3 2021)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends across the periods under review. There has been a general fluctuation in the cost of operating revenue, accounts payable, and payables turnover ratios, reflecting changes in operational efficiency and payment management.
- Cost of Operating Revenue
- The cost of operating revenue showed a gradual increasing trend from March 31, 2017, reaching a peak in December 2018. Following this peak, it experienced a decline through mid-2020, likely influenced by external factors impacting operations. Starting end of 2020, this cost resumed an upward trend, surpassing previous highs by June 30, 2022, indicating increased operational expenses or expanded activity levels over time.
- Accounts Payable
- Accounts payable followed a somewhat similar pattern, increasing steadily from March 2017 until a noticeable dip in June 2020. After this low point, accounts payable consistently grew through to June 2022. This pattern suggests variations in the company's payment cycles or credit terms with suppliers, with a pronounced drop in mid-2020 potentially linked to cash flow management strategies amid challenging operating conditions.
- Payables Turnover Ratio
- The payables turnover ratio indicated greater variability. Initially, it rose from about 4.72 in March 2017 to a peak near 6.97 in September 2019, implying improved efficiency in settling payables during this period. However, a sharp decline occurred from late 2019 through mid-2021, reaching lows around 2.67. Subsequently, a partial recovery was seen, with the ratio increasing but not returning to earlier peak levels. This decline in turnover ratio may reflect delayed payments or reduced operational activity affecting the accounts payable cycle.
In summary, the analysis points to a business cycle that experienced growing operational costs and payable balances until late 2019, followed by a contraction phase in 2020 with reduced costs and payables, likely related to external disruptions. The company subsequently entered a recovery phase with rising costs and liabilities, although payment turnover efficiency has not yet fully returned to pre-2020 levels. These trends suggest adjustments in revenue-related costs and supplier payment dynamics corresponding with broader operational challenges and recovery efforts.
Working Capital Turnover
Delta Air Lines Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||||||
| Operating revenue | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Working capital turnover
= (Operating revenueQ2 2022
+ Operating revenueQ1 2022
+ Operating revenueQ4 2021
+ Operating revenueQ3 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital displayed a predominantly negative trend throughout most quarters, indicating a consistent deficit in current assets relative to current liabilities. From March 2017 to December 2019, the figures worsened from approximately -9,073 million US dollars to about -11,955 million US dollars, showing increasing strain in liquidity. A notable improvement occurred during 2020, particularly in Q3 with a shift into positive working capital at around 5,305 million US dollars. However, this was short-lived, as the working capital declined again in subsequent quarters of 2021 and 2022, falling back to approximately -9,011 million US dollars by June 2022.
- Operating Revenue
- Operating revenue showed seasonal fluctuations with a general upward trajectory from early 2017 through the end of 2019, rising from approximately 9,148 million US dollars in Q1 2017 to a peak of 12,560 million US dollars in Q3 2019. This period was characterized by steady growth consistent with cyclical patterns in the airline industry. In 2020, there was a significant decline in revenue, falling to a low of 1,468 million US dollars in Q2 consistent with the global economic disruptions occurring at that time. Revenue began to recover gradually through 2021 and 2022, reaching 13,824 million US dollars by Q2 2022, suggesting a rebound surpassing pre-pandemic levels.
- Working Capital Turnover
- The working capital turnover ratio is available only for limited periods in 2020, with a marked increase to 4.63 in Q3 and a further rise to 11.57 in Q4. These elevated figures may reflect operational adjustments or improved efficiency in using working capital during an otherwise challenging period for the company, possibly associated with the temporary working capital surplus seen in the same timeframe.
- Overall Insights
- The data reflects the company's exposure to external market conditions, notably the economic impact around 2020 which severely affected operating revenue and temporarily improved working capital. Despite persistent negative working capital in multiple quarters, the company's operating revenue demonstrated resilience and a capacity for recovery post-crisis. The volatility in working capital and its turnover ratio during 2020 indicates a period of financial repositioning and operational recalibration, followed by a return to pre-crisis revenue trends and working capital deficits.
Average Inventory Processing Period
Delta Air Lines Inc., average inventory processing period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio demonstrates notable fluctuations over the analyzed periods. Starting from a value of 13.06 in Q1 2018, the ratio increased to a peak of 18.6 in Q4 2019, indicating a significant improvement in how quickly inventory was sold and replaced during this timeframe. However, post-Q4 2019, the ratio experienced a downward trend, reaching a low of 10.83 by Q2 2022. This decline suggests a slowdown in inventory movement, potentially reflecting challenges in sales or inventory management during the later periods.
- Average Inventory Processing Period (in days)
- The average inventory processing period inversely correlates with the inventory turnover ratio, as expected. Initially recorded at 28 days in Q1 2018, the processing period decreased to a minimum of 18 days in Q2 2020, aligning with the period of higher turnover ratios. Following this low, the processing period gradually increased, reaching 34 days by Q2 2022. This lengthening period indicates an elongation in the time inventory remains before being sold, coinciding with the reduction in turnover ratio and suggesting possible inefficiencies or decreased demand during the later periods.
- Overall Trends and Insights
- Overall, the data reveals a period of improved inventory efficiency leading up to late 2019, marked by increasing turnover and decreasing processing days. This was followed by a reversal in trend, with turnover slowing and inventory days increasing through to mid-2022. These changes could reflect external factors impacting business operations, such as market demand shifts or supply chain disruptions. The relatively higher volatility observed starting in early 2020 underscores the potential influence of extraordinary events affecting inventory management effectiveness.
Average Receivable Collection Period
Delta Air Lines Inc., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio exhibits variability over the analyzed periods. Starting at 17.35 in March 2017, the ratio generally remains within a range of approximately 14 to 19 units through to early 2020, with occasional peaks such as 19.79 in March 2020. An exceptional increase is observed at 24.77 in June 2020, followed by a sharp decline to 16.34 by September 2020. From this point, the ratio declines further, reaching a low of 6.89 in March 2021, suggesting a significant slowdown in receivables turnover during this period. Afterwards, a gradual recovery occurs, with the ratio increasing to 13.51 by June 2022. These fluctuations indicate some instability in the company's efficiency in collecting receivables over the period, with notable disruption around mid-2020 to early 2021.
- Average Receivable Collection Period
- The average collection period generally mirrors the inverse behavior of the receivables turnover. Initially stable around 21–22 days until early 2020, it then drops to a minimum of 15 days in June 2020, correlating with the peak in turnover ratio. Subsequently, the collection period increases sharply, reaching a high of 53 days in March 2021, indicating slower collections during this time. After this peak, the metric improves gradually to 27 days by June 2022. This pattern suggests that the company experienced increased challenges in receivables collection during and after mid-2020, possibly reflecting external factors impacting customer payment behavior or company credit policies.
- Overall Trends and Insights
- The data reveals a period of relative stability in receivables management from 2017 through early 2020, with consistent turnover ratios and collection periods. The values then demonstrate significant volatility commencing around mid-2020, characterized by an abrupt increase in turnover ratio and decrease in collection period, followed by a notable reversal with weakened turnover and extended collection days peaking in early 2021. This indicates a disruption, prolonged inefficiencies in collections, or altered business conditions during this timeframe. A moderate recovery is evident thereafter, though metrics have not fully returned to pre-2020 levels by mid-2022. The patterns suggest that receivables management capacity was strongly affected during the examined period, warranting close examination of underlying causes and strategies for enhancement.
Operating Cycle
Delta Air Lines Inc., operating cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period demonstrates a fluctuating yet generally stable trend from March 2017 through June 2022. Starting at 28 days in March 2018, it decreases to a low of 18 days in June 2020, indicating improved inventory turnover efficiency during this period. Subsequently, the period increases to a peak of 34 days in both June 2021 and June 2022, suggesting a slower inventory processing rate in the most recent periods. Overall, the metric shows seasonal and cyclical variations but remains in the range of approximately 18 to 34 days.
- Average Receivable Collection Period
- The average receivable collection period exhibits considerable volatility over the analyzed quarters. Initially steady around 21-22 days from March 2018 to December 2018, it declines to a low of 15 days in June 2020, indicating improved collection efficiency. However, this is followed by a substantial increase to a peak of 53 days in June 2021, which reflects a significant slowdown in receivable collection during that period. After the peak, the period gradually decreases again to 27 days by June 2022. This trend suggests external factors or operational challenges may have impacted collections notably in 2021.
- Operating Cycle
- The operating cycle, representing the combined duration of inventory processing and receivables collection, follows a pattern similar to the above metrics. It ranges from a low of 34 days in June 2020 to a high of 86 days in June 2021. The operating cycle remains relatively stable and low between 39 and 52 days prior to 2020, indicating efficient working capital management. However, a marked elongation is observed beginning in 2020, with peaks in 2021 implying an extended cash-to-cash cycle potentially due to longer inventory holding and slower receivable collections. Although it begins to recover in 2022, reaching 61 days, the operating cycle remains elevated compared to pre-pandemic levels.
Average Payables Payment Period
Delta Air Lines Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited a general decline over the observed periods. Initially, the ratio increased from 4.72 in March 2017 to a peak of 6.97 by September 2020, indicating an accelerated rate of payments towards payables during that timeframe. However, following this peak, the ratio markedly decreased to a lower range between 2.67 and 3.51 throughout 2021 and the first half of 2022. This decline suggests a deceleration in the frequency of payments, implying longer intervals before settling payables in the most recent periods.
- Average Payables Payment Period
- The average payables payment period, measured in days, presented a reverse trend relative to the payables turnover ratio. From 77 days in March 2017, the period shortened steadily to as low as 52 days by September 2020, reflecting faster payment cycles. Subsequently, a pronounced increase occurred, with the period peaking at 137 days by June 2021. This elevated level persisted with some fluctuations, stabilizing around 104 days by June 2022. The lengthening payment period indicates a slower payment pace, consistent with the observed decrease in payables turnover ratio during the latter periods.
- Overall Trends and Insights
- Collectively, the data reveal an initial strategy focusing on expediting payments, improving vendor relationships, or possibly taking advantage of early payment discounts, as evidenced by the rising payables turnover and reducing payment days through 2020. From 2021 onward, the reversal in these metrics may indicate operational or liquidity adjustments leading to extended payment terms. This shift could reflect external challenges or internal policy changes in managing cash flow, with potential implications for supplier relations and working capital management.
Cash Conversion Cycle
Delta Air Lines Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited some fluctuations over the observed timeframe. In 2017 and early 2018, values ranged between 22 to 31 days, with a general decline to about 20 days in mid-2018 and stability through early 2019. However, starting from March 2020, a tendency toward lengthening appeared, reaching a peak of 34 days by June 2022. This suggests variability in inventory turnover efficiency, with some elongation during the later periods analyzed.
- Average Receivable Collection Period
- The receivable collection period remained relatively stable around 20 to 22 days through 2017 and 2018, before decreasing slightly to around 15 to 18 days in early 2020. Post first quarter 2020, there was a marked increase, peaking at 53 days in June 2021, indicating a slower collection process. Subsequently, a decline is observed, reducing the average period to 27 days by mid-2022, yet remaining elevated compared to pre-pandemic levels. This trend reflects increased difficulty or leniency in collecting receivables during the pandemic period, followed by some improvement.
- Average Payables Payment Period
- The average payables payment period decreased from around 77 days in early 2017 to a low of approximately 52 days by mid-2020, signaling faster payments to suppliers. However, from late 2020 onwards, there was a substantial increase, culminating at 137 days in mid-2021. The extended payment period then marginally declined but remained elevated above 100 days through mid-2022. This indicates a strategic lengthening of payment terms or delayed payments, possibly to conserve cash during financially strained periods.
- Cash Conversion Cycle
- The cash conversion cycle consistently maintained negative values throughout the periods, indicating that the company was able to finance its inventory and receivables through payables. In 2017 and early 2018, the cycle was less negative, around -28 to -20 days. From 2019 through 2020, the negative cycle lengthened to approximately -40 days, with a significant deepening observed in 2021 reaching nearly -53 days. This trend suggests improved liquidity management and extended supplier credit, enhancing working capital efficiency during challenging times, particularly during the pandemic. The cycle slightly contracted toward mid-2022 but remained substantially negative.