Alaska Air Group Inc (ALK)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		47.09	42.71	81.47	82.06	73.51	68.97	78.91	80.58	76.77	80.37	73.68	72.17	77.77	69.02	66.63	55.70	69.82	80.95	100.84	99.75
DOH	days	7.75	8.55	4.48	4.45	4.97	5.29	4.63	4.53	4.75	4.54	4.95	5.06	4.69	5.29	5.48	6.55	5.23	4.51	3.62	3.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 47.09
= 7.75

The days of inventory on hand (DOH) for Alaska Air Group Inc has exhibited some fluctuations over the period from March 31, 2020, to December 31, 2024. The DOH measure represents the average number of days it takes for the company to sell its inventory.

Initially, the company had a DOH of around 3-4 days, indicating efficient management of inventory levels. However, there was a gradual increase in DOH from September 30, 2020, through December 31, 2021, which could suggest potential issues such as slower inventory turnover or excess inventory accumulation during that period.

From March 31, 2022, to June 30, 2024, the DOH figures remained relatively stable between 4-5 days, which could indicate a return to more normalized inventory management practices. However, there was a significant spike in DOH on September 30, 2024, and December 31, 2024, reaching 8.55 days and 7.75 days, respectively. This sudden increase could signify challenges in managing inventory efficiently, potentially leading to higher carrying costs and decreased liquidity.

Overall, Alaska Air Group Inc should continue to monitor its inventory levels closely to ensure optimal balance between having enough inventory to meet demand and avoiding excess inventory that could tie up resources. Periodic evaluation and adjustments to inventory management strategies may be necessary to maintain healthy levels of working capital and operational efficiency.