Alaska Air Group Inc (ALK)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,900,000 | 8,056,000 | 5,381,000 | 4,991,000 | 6,406,000 |
| Inventory | US$ in thousands | 116,000 | 104,000 | 62,000 | 57,000 | 72,000 |
| Inventory turnover | 68.10 | 77.46 | 86.79 | 87.56 | 88.97 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,900,000K ÷ $116,000K
= 68.10
The inventory turnover ratio for Alaska Air Group Inc. has been consistently reported as 0.00 for the past five years, from 2019 to 2023. This indicates that the company is not effectively managing its inventory levels in relation to its cost of goods sold. A low or zero inventory turnover ratio suggests that the company may be overstocked or facing issues such as obsolete inventory, poor sales, or ineffective inventory management practices. It may also imply inefficient operations or a slow-moving inventory, which could lead to increased storage costs and potential write-offs. Alaska Air Group Inc. should consider evaluating and improving its inventory management strategies to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023