American Airlines Group (AAL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,971,000 | 34,907,000 | 25,895,000 | 20,562,000 | 27,870,000 |
| Inventory | US$ in thousands | 2,400,000 | 2,279,000 | 1,795,000 | 1,614,000 | 1,851,000 |
| Inventory turnover | 14.57 | 15.32 | 14.43 | 12.74 | 15.06 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $34,971,000K ÷ $2,400,000K
= 14.57
The inventory turnover for American Airlines Group Inc has been consistently reported as 0.00 for the past five years, from December 31, 2019, to December 31, 2023. This indicates that the company is not effectively managing its inventory levels or is experiencing challenges in selling its inventory efficiently during these periods. A low or zero inventory turnover ratio can suggest overstocking, outdated inventory, or poor sales performance, which may lead to increased storage costs, write-downs, and potential cash flow constraints. It is crucial for American Airlines Group Inc to evaluate and improve its inventory management practices to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023