American Airlines Group (AAL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	35,852,000	34,971,000	34,907,000	25,895,000	20,562,000
Inventory	US$ in thousands	2,638,000	2,400,000	2,279,000	1,795,000	1,614,000
Inventory turnover		13.59	14.57	15.32	14.43	12.74

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $35,852,000K ÷ $2,638,000K
= 13.59

The inventory turnover ratio for American Airlines Group has shown a generally increasing trend over the past five years. Starting at 12.74 in December 31, 2020, the ratio has risen to 15.32 by December 31, 2022, before slightly declining to 13.59 by December 31, 2024. This indicates that the company has been more efficient in managing its inventory levels and turning over its inventory into sales over the period under review. The increase in the ratio suggests that American Airlines Group has been able to sell its inventory more quickly, which can be a positive sign of effective inventory management. However, the slight decrease in 2024 might warrant further investigation to ensure that the company is optimizing its inventory turnover efficiency.