Alaska Air Group Inc (ALK)
Days of inventory on hand (DOH)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 47.11 | 68.65 | 76.77 | 77.77 | 69.82 | |
| DOH | days | 7.75 | 5.32 | 4.75 | 4.69 | 5.23 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 47.11
= 7.75
The days of inventory on hand (DOH) for Alaska Air Group Inc has shown a slight decrease from 5.23 days on December 31, 2020, to 4.69 days on December 31, 2021. This implies that the company was more efficient in managing its inventory during the year 2021. However, there was a minor increase in DOH to 4.75 days on December 31, 2022, indicating a small uptick in the amount of time inventory is held.
The trend reversed in the subsequent years, as the DOH increased further to 5.32 days on December 31, 2023, and notably jumped to 7.75 days on December 31, 2024. This significant increase in DOH in 2024 may suggest difficulties in inventory management, potentially leading to excess inventory or slower inventory turnover.
Overall, Alaska Air Group Inc experienced fluctuations in its DOH over the years, with improvements in inventory management efficiency in 2021 followed by setbacks in the later years, particularly in 2024. Monitoring and optimizing inventory levels will be crucial for the company to maintain cost-effectiveness and operational efficiency in the future.
Peer comparison
Dec 31, 2024