Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Delta Air Lines Inc., short-term (operating) activity ratios
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
| 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 | ||||||
| FedEx Corp. | 143.03 | 121.01 | 126.03 | — | — | |
| Union Pacific Corp. | 35.11 | 30.62 | 28.91 | — | — | |
| United Parcel Service Inc. | 135.69 | 136.50 | 145.00 | — | — | |
| Inventory Turnover, Sector | ||||||
| Transportation | 110.34 | 97.56 | 95.15 | — | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.87 | 3.61 | 3.94 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 6.96 | 6.85 | 7.65 | — | — | |
| Uber Technologies Inc. | 7.16 | 10.38 | 11.65 | — | — | |
| Union Pacific Corp. | 12.66 | 12.98 | 13.61 | — | — | |
| United Parcel Service Inc. | 7.76 | 7.87 | 7.76 | — | — | |
| Receivables Turnover, Sector | ||||||
| Transportation | 7.66 | 7.88 | 8.36 | — | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.60 | 7.49 | 7.67 | — | — | |
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
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
| 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 | ||||||
| FedEx Corp. | 21.86 | 21.17 | 23.00 | — | — | |
| Uber Technologies Inc. | 10.87 | 21.93 | 26.50 | — | — | |
| Union Pacific Corp. | 28.99 | 31.92 | 28.98 | — | — | |
| United Parcel Service Inc. | 12.93 | 13.11 | 13.34 | — | — | |
| Payables Turnover, Sector | ||||||
| Transportation | 16.37 | 16.89 | 17.98 | — | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.74 | 7.44 | 7.40 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 12.13 | 11.46 | 17.11 | — | — | |
| Uber Technologies Inc. | — | 3.69 | 1.71 | — | — | |
| Union Pacific Corp. | — | 476.41 | — | — | — | |
| United Parcel Service Inc. | 13.21 | 26.45 | 43.84 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Transportation | 18.55 | 15.01 | 13.65 | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 6.90 | 4.47 | 10.00 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 3 | 3 | 3 | — | — | |
| Union Pacific Corp. | 10 | 12 | 13 | — | — | |
| United Parcel Service Inc. | 3 | 3 | 3 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Transportation | 3 | 4 | 4 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 94 | 101 | 93 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 52 | 53 | 48 | — | — | |
| Uber Technologies Inc. | 51 | 35 | 31 | — | — | |
| Union Pacific Corp. | 29 | 28 | 27 | — | — | |
| United Parcel Service Inc. | 47 | 46 | 47 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Transportation | 48 | 46 | 44 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 48 | 49 | 48 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 55 | 56 | 51 | — | — | |
| Union Pacific Corp. | 39 | 40 | 40 | — | — | |
| United Parcel Service Inc. | 50 | 49 | 50 | — | — | |
| Operating Cycle, Sector | ||||||
| Transportation | 51 | 50 | 48 | — | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 142 | 150 | 141 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 17 | 17 | 16 | — | — | |
| Uber Technologies Inc. | 34 | 17 | 14 | — | — | |
| Union Pacific Corp. | 13 | 11 | 13 | — | — | |
| United Parcel Service Inc. | 28 | 28 | 27 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Transportation | 22 | 22 | 20 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 47 | 49 | 49 | — | — | |
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
| 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 | ||||||
| FedEx Corp. | 38 | 39 | 35 | — | — | |
| Union Pacific Corp. | 26 | 29 | 27 | — | — | |
| United Parcel Service Inc. | 22 | 21 | 23 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Transportation | 29 | 28 | 28 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 95 | 101 | 92 | — | — | |
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 + 29 – 108 = -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. |