American Airlines Group (AAL)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		13.59	14.57	15.32	14.43	12.74
DOH	days	26.86	25.05	23.83	25.30	28.65

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 13.59
= 26.86

To analyze American Airlines Group's days of inventory on hand (DOH) over the years, we observe a gradual decrease in the DOH metric from 28.65 days as of December 31, 2020, to 25.30 days in 2021, further declining to 23.83 days by the end of 2022.

However, a slight increase is noted in 2023 where the DOH stands at 25.05 days, followed by another increase to 26.86 days by December 31, 2024.

The decreasing trend from 2020 to 2022 suggests a potential improvement in inventory management efficiency, as the airline carries less inventory relative to its sales.

Nonetheless, the slight upticks in 2023 and 2024 may indicate a need for further evaluation of inventory control practices to maintain an optimal balance between inventory levels and sales demand.

Overall, understanding these fluctuations in the DOH metric can assist stakeholders in assessing the company's inventory management strategies and efficiency in managing its resources.