United Airlines Holdings Inc. (NASDAQ:UAL)

The data presents various turnover ratios and operational cycle metrics over multiple quarters, showing distinct trends in efficiency and cash management.

Inventory Turnover

Starting from a value of 16.48 in the first reported quarter, there is a generally increasing trend in inventory turnover over time, reaching a peak above 40 in late 2022 and early 2023. Following this peak, the ratio slightly declines but remains in the range of approximately 32 to 36, indicating an overall improvement in inventory management and faster inventory cycles.

Receivables Turnover

This metric starts at 11.86 and fluctuates through subsequent quarters, showing an increasing pattern with values peaking near 28 in 2024 and 2025. This suggests a more efficient collection process and reduced average times for receivables turnover in recent periods after some earlier volatility.

Payables Turnover

Payables turnover also shows some variation between periods, starting at 9.63 and rising toward a range between 12 and 14 in recent quarters. Peaks and dips are present; however, the trend suggests relatively stable payables management with increased turnover rates indicating quicker payment to suppliers in recent periods.

Working Capital Turnover

The working capital turnover shows notable volatility. After an initial period with mid-range values (around 7.4 to 3.24), there is an anomalous large increase to very high values (up to 681.14), followed by missing data in subsequent periods. This spike indicates an unusual or exceptional efficiency in working capital use for that specific quarter but requires caution as data are incomplete thereafter.

Average Inventory Processing Period

The days required to process inventory decrease consistently from 22 days down to around 9-11 days over the time period, aligning with the increasing inventory turnover ratio. This implies a faster turnover time, reflective of improved inventory management.

Average Receivable Collection Period

The collection period tends to decrease from a peak near 48 days early on to approximately 13-16 days in more recent quarters, supporting the trend of improved efficiency in collecting receivables.

Operating Cycle

There is a steady decline in the operating cycle length, from 53 days in the earlier quarter down to a consistent range of about 24-27 days in later quarters. This reduction reflects increased operational efficiency by shortening the combined duration of inventory and receivable processing.

Average Payables Payment Period

The payables payment period starts higher, with values around 38 to 63 days early in the timeframe, then decreases to a stable range of 26 to 30 days in later quarters, suggesting a more controlled and consistent payment schedule to suppliers.

Cash Conversion Cycle

The cash conversion cycle exhibits a marked improvement, decreasing from positive values (15 to 2 days) to negative values (down to -7 days), which implies that the company increasingly manages its cash flow to receive payments from customers before paying suppliers. Negative values typically indicate strong liquidity management and working capital efficiency.

Overall, the company demonstrates improving operational efficiencies with faster turnover in inventory and receivables, shorter operating and cash conversion cycles, and refined payables management. These trends point to enhanced management of working capital and liquidity over the reported periods.

The operating revenue demonstrates significant volatility over the analyzed quarters. Initially, there is a sharp decline from $7,979 million in March 2020 to a low of $1,475 million in June 2020, reflecting external market pressures. Following this trough, a gradual recovery is observable with revenues increasing steadily through 2021 and peaking in June 2022 at $12,112 million. Subsequent quarters witness moderate fluctuations, with revenues generally remaining above $12,000 million, although a slight decreasing trend is evident approaching March 2025, where revenue records $13,213 million.

Regarding aircraft fuel, spare parts, and supplies expenses, there is a relatively stable trend with mild upward movement. Starting at $1,070 million in March 2020, expenditures experience minor fluctuations but generally increase over time, reaching $1,601 million by March 2025. This gradual rise indicates consistent or growing operational activity and possibly higher fuel and maintenance costs impacting the cost structure.

The inventory turnover ratio presents a notable upward trend from the first reported value of 16.48 in June 2020 to a peak at 40.82 in June 2023. Following this peak, there is a slight decline, maintaining levels around 34 to 36 towards March 2025. This trend suggests enhanced efficiency in inventory management over time, with more rapid stock turnover improving operational effectiveness. The small fluctuations near the end of the series imply stabilization after a period of steady improvement.

Operating Revenue

Experienced a sharp decline in early 2020 with gradual and sustained recovery through 2021 and 2022, followed by moderate fluctuations and slight decline approaching 2025.

Aircraft Fuel, Spare Parts, and Supplies

Showed a generally stable and mildly increasing pattern, reflecting consistent operating needs and rising associated expenses over the period.

Inventory Turnover Ratio

Demonstrated significant improvement in inventory efficiency, nearly tripling from mid-2020 to mid-2023 before stabilizing in the mid-30s through early 2025.

The analysis of the quarterly financial data reveals distinct patterns in operating revenue, net receivables, and receivables turnover ratios over the observed periods.

Operating Revenue

Operating revenue experienced a precipitous decline at the beginning of the timeline, bottoming out in June 2020 at 1,475 million US dollars from 7,979 million in March 2020. This likely reflects a significant operational impact during that period. From June 2020 onward, revenue demonstrated a steady recovery trend, with intermittent fluctuations, reaching a peak of 14,986 million US dollars in June 2024. Following this peak, revenues exhibit a slight declining trend but remain relatively high compared to the initial quarters, indicating partial stabilization at a new level of operations.

Receivables, Net

Net receivables show a consistent upward trend across the quarters, starting at 792 million US dollars in March 2020 and closing at 2,288 million in March 2025. This growth indicates an increasing amount of credit extended or delayed collections, which may be a function of rising revenue levels or changes in credit policies. Notably, receivables peak in mid-2022 and mid-2024, aligning with revenue peaks, suggesting a correlation between sales volume and receivables management.

Receivables Turnover Ratio

The receivables turnover ratio, available from September 2020, shows a marked improvement over time. Initially at 11.86, the ratio dips to a low of 7.63 in June 2021, before embarking on a generally upward trajectory, peaking at 28.3 in March 2024. This upward trend reflects enhanced efficiency in collecting receivables, potentially due to strengthened credit controls or improved cash collections. The ratio remains elevated through subsequent quarters, indicating sustained effectiveness in receivables management despite fluctuations in revenue and receivables balances.

The operating revenue exhibits notable volatility throughout the observed periods. Initial revenue was highest at the start, followed by a significant decline in mid-2020, reaching a low in June 2020. Subsequently, a progressive increase is observed until late 2021, indicating a recovery phase. Revenue peaks around mid-2022 and early 2023 but shows some fluctuations thereafter, with slight decreases seen toward the end of the dataset in early 2025.

Accounts payable values demonstrate a general upward trend over the entire period. Although there are minor fluctuations, the overall pattern shows increasing liabilities, with values approximately doubling from the start of the data through early 2025. This growth in accounts payable may imply increasing operational scale or delayed payments to suppliers.

The payables turnover ratio, available from March 2021 onward, indicates some variability but generally suggests improving efficiency in payables management. Starting at 9.63, the ratio dips to 5.77 in the following quarter, then climbs consistently with some oscillations, reaching above 14 at the peak. This trend suggests that the company increasingly improves its speed in paying suppliers, reflecting potentially stronger liquidity or more favorable payment terms.

Operating Revenue Trends

Initial sharp decline in early 2020, followed by steady recovery until late 2021.

Peak performance around mid-2022 and early 2023, with minor decreases toward early 2025.

Accounts Payable Trends

Consistent increase over time, with values approximately doubling across the period.

Suggests growing operational activities or extended payment cycles.

Payables Turnover Ratio

Data available from March 2021, showing initial decline, then improvement overall.

Peak ratio near 14 indicates faster payment cycles and improved payables management.

Working Capital

The working capital experienced significant volatility over the observed periods. Initially, it was negative at -8,182 million USD (Mar 31, 2020), improved gradually to a positive position by Sep 30, 2020 at 685 million USD, and continued to increase, peaking at 6,609 million USD in Jun 30, 2021. Subsequently, it showed a downward trend, declining back into negative territory from Mar 31, 2023 (-2,049 million USD) and deteriorating further to -6,068 million USD by Mar 31, 2025. This pattern indicates substantial fluctuations in short-term liquidity, with marked improvement during mid-2020 to mid-2021, followed by a prolonged decline thereafter.

Operating Revenue

Operating revenue demonstrated a recovery trend post the sharp decline in the first half of 2020, with revenues starting at 1,475 million USD (Jun 30, 2020) and rising steadily to 8,192 million USD by Dec 31, 2021. The upward trajectory continued through 2022 and peaked at 14,986 million USD in Jun 30, 2024. After reaching this high, revenue fluctuated mildly but remained strong, ending at 13,213 million USD in Mar 31, 2025. This growth pattern suggests a return to and eventual surpassing of pre-pandemic revenue levels, indicative of improving business performance and market conditions.

Working Capital Turnover

The working capital turnover ratios are reported only for a limited number of periods, beginning from Sep 30, 2020. The turnover ratio started at 7.4, decreased to 2.21 by Sep 30, 2021, then increased again to very high values, reaching 681.14 by Dec 31, 2022. Such spikes in the turnover ratio could be explained by the low levels of working capital recorded during these periods. The extremely high ratios reflect efficient utilization of working capital to generate revenue or possibly distortions caused by unusual working capital levels. Data beyond Dec 31, 2022, is unavailable, precluding further trend analysis for this metric.

Inventory Turnover

The inventory turnover ratio exhibits a generally upward trend from March 31, 2021, through March 31, 2025. Starting at 16.48 in March 2021, the ratio initially declines to 11.54 by June 2021, followed by a steady increase reaching a peak of 40.82 in June 2023. After this peak, a moderate decline occurs with the ratio stabilizing around the mid-30s, ending at 36.06 by March 2025. This overall increase suggests improved efficiency in inventory management over the period, with the company turning over inventory more frequently.

Average Inventory Processing Period

The average inventory processing period, measured in days, inversely correlates with the inventory turnover trend. Starting from a high of 22 days in March 2021, it rises briefly to 32 days in June 2021, then consistently decreases to 9 days by March 2023. Beyond this point, the period remains relatively stable at about 9 to 11 days, with a slight increase to 11 days in some quarters before settling at 10 days by March 2025. This decline and subsequent stabilization indicate a reduction in the time inventory remains on hand, reflecting enhanced inventory processing efficiency.

Overall Analysis

The data reflects a significant improvement in inventory management efficiency beginning in mid-2021, with the company increasing its inventory turnover while reducing the average days of inventory held. The temporary fluctuations around mid-2021 suggest some short-term disruptions or adjustments before the firm achieved a more optimal inventory cycle. Since mid-2023, both indicators appear to have reached a plateau, implying that the company may have approached a steady state in inventory handling performance.

Receivables Turnover

The receivables turnover ratio exhibits a clear upward trend from the first recorded value in March 2021 through March 2025. Starting at 11.86, it declines to 7.63 in June 2021 before gradually rising to a peak of 28.3 by March 2024. After this peak, the ratio fluctuates slightly but remains relatively high, finishing at 25.23 in March 2025. This suggests an overall improvement in the company's efficiency at collecting its receivables over this period.

Average Receivable Collection Period

The average collection period inversely mirrors the receivables turnover ratio, beginning at 31 days in March 2021, increasing to 48 days in June 2021, and then steadily decreasing to as low as 13 days by March 2024. From that point onward, it shows minor fluctuations but stays mostly between 13 and 16 days, ending at 14 days in March 2025. This declining trend indicates that the company has become faster in collecting its receivables over time.

Insights and Summary

The data suggests a strong improvement in receivables management from 2021 onwards. The initial dip in turnover and rise in collection period around mid-2021 may indicate temporary challenges or seasonal effects, but the overall pattern is towards enhanced collection efficiency. The shortening collection period and rising turnover ratio imply better cash flow management and possibly stronger credit policies or improved customer payment behavior. Stability in these metrics in the most recent quarters indicates the company has maintained these improvements consistently.

The financial data reveals distinct trends in the inventory processing period, receivable collection period, and operating cycle over the examined quarters.

Average Inventory Processing Period

The inventory processing period shows a notable decline over time. Starting at 22 days in March 2021, it initially increased to 32 days in June 2021 but then trended downward consistently through to December 2023, reaching a low of 9 days. A slight increase to 11 days occurs in December 2023, then stabilizes around 10 to 11 days through to March 2025. This overall reduction suggests improved efficiency in inventory management and quicker turnover of inventory stock.

Average Receivable Collection Period

The receivable collection period demonstrates some variability but follows a gradual downward trend overall. Beginning at 31 days in March 2021, it rose sharply to 48 days in June 2021, then moderately declined to 31 days by December 2021. From 2022 onward, the period continued declining steadily to a low of 13 days in both September 2023 and March 2024, with minor fluctuations occurring thereafter but generally remaining between 13 and 17 days. This indicates an improving capability to collect receivables faster, enhancing cash flow efficiency.

Operating Cycle

The operating cycle, representing the sum of inventory processing and receivable collection periods, reflects initially elevated levels that decrease over time. It peaked at 80 days in June 2021, then consistently declined to 23 days by September 2023. Subsequently, it shows mild fluctuations, generally stabilizing around 24 to 27 days towards the end of the period measured. The contraction of the operating cycle aligns with improvements in both inventory and receivable management, leading to faster conversion of resources into cash.

Overall, the trends indicate continuous improvements in operational efficiency, particularly in inventory turnover and receivables collection, resulting in a shorter operating cycle. These enhancements likely contribute positively to liquidity and working capital management over the reported periods.

The data reveals developments in the company's payables management over several quarters, focusing on payables turnover and the average payables payment period.

Payables Turnover

From March 2020 through September 2020, data is unavailable, but starting from December 2020, the payables turnover ratio begins at 9.63 and declines sharply to 5.77 in June 2021, reflecting a significant slowdown in turnover during this period. Subsequently, the ratio trends upward, increasing steadily to peak at 14.01 in March 2024. This indicates an acceleration in the frequency of payables payments and potentially improved operational efficiency. After reaching the peak, minor fluctuations occur, but the ratio remains relatively high, staying above 12 for the final reported quarters, suggesting consistent and rapid payments to suppliers.

Average Payables Payment Period

Corresponding with the payables turnover trend, the average payables payment period shows an inverse pattern, starting at 38 days in December 2020, rising markedly to 63 days by June 2021, signifying a longer duration taken to settle payables. From that high point, the payment period steadily decreases to 26 days in March 2024, in line with the increasing turnover ratio and indicating improved payment promptness. The period stabilizes around the high twenties towards the end of the timeline, with minor variations between 26 and 30 days, implying a consolidation of payment practices.

Overall, the data suggests that after a phase of extended payment durations and slower payables turnover around mid-2021, there has been a notable improvement in payables management. The company appears to have accelerated its payment cycle, reducing the time taken to settle payables and increasing turnover rate, which may positively impact supplier relationships and working capital efficiency.

The analysis of the quarterly financial data reveals distinct trends in the company's working capital management over the observed periods.

Average Inventory Processing Period

The average inventory processing period demonstrates a general downward trend from 22 days in early 2021 to approximately 9-11 days in 2023 and 10 days by March 2025. This reduction indicates an improvement in inventory turnover efficiency, suggesting that the company has become more effective at converting inventory into sales or production output over time.

Average Receivable Collection Period

The receivable collection period exhibits some volatility but overall shows improvement. Starting at 31 days in early 2021, it rose sharply to 48 days mid-2021 before declining steadily to a range between 13 and 17 days from late 2022 through early 2025. This reduction implies that the company has enhanced its ability to collect payments from customers more quickly, thereby potentially improving cash inflows.

Average Payables Payment Period

The payables payment period fluctuates considerably. It increased significantly from 38 days to a peak of 63 days in mid-2021, indicating a lengthening in the time the company takes to settle its obligations to suppliers. Following this peak, the period steadily decreased to around 26-30 days from 2023 onward. This shorter payment period suggests the company has accelerated payments, possibly to maintain good supplier relationships or respond to changing credit terms.

Cash Conversion Cycle (CCC)

The cash conversion cycle shows a notable improvement, trending downward from 15 days to negative values after late 2021. The CCC becomes negative, reaching as low as -7 days and generally ranging between -2 and -6 days through early 2025. A negative CCC indicates that the company is able to receive cash from operations before it needs to pay its suppliers, a sign of strong liquidity and efficient working capital management.

In summary, the company has improved its operational efficiency by reducing inventory processing and receivable collection periods while initially increasing and then normalizing its payables period. These improvements collectively contribute to a reduced and often negative cash conversion cycle, highlighting effective management of cash flow timing and working capital resources.