Alaska Air Group Inc (ALK)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 9,371,000 | 8,627,000 | 8,636,000 | 8,534,000 | 8,527,000 | 8,414,000 | 8,443,000 | 8,461,000 | 7,984,000 | 7,555,000 | 6,852,000 | 5,629,000 | 4,822,000 | 4,279,000 | 3,465,000 | 3,175,000 | 3,980,000 | 4,614,000 | 5,647,000 | 6,783,000 |
| Inventory | US$ in thousands | 199,000 | 202,000 | 106,000 | 104,000 | 116,000 | 122,000 | 107,000 | 105,000 | 104,000 | 94,000 | 93,000 | 78,000 | 62,000 | 62,000 | 52,000 | 57,000 | 57,000 | 57,000 | 56,000 | 68,000 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $9,371,000K ÷ $199,000K
= 47.09
Alaska Air Group Inc's inventory turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replaced during a specific period.
The inventory turnover ratio for Alaska Air Group Inc ranged from a high of 100.84 in June 2020 to a low of 42.71 in September 2024. A higher inventory turnover ratio generally indicates that the company is selling its inventory quickly and efficiently. Conversely, a lower ratio may suggest inefficiencies in managing inventory or challenges in selling products.
The company seems to have experienced a decreasing trend in inventory turnover from the peak in mid-2020 to the trough in late 2024, with some fluctuations along the way. In particular, the notable decrease in the ratio from mid-2022 to late 2024 may raise concerns about potential issues such as overstocking, slow-moving inventory, or challenges in sales.
Overall, Alaska Air Group Inc needs to closely monitor its inventory management practices and implement strategies to improve inventory turnover efficiency to better align with industry standards and optimize its operational performance.
Peer comparison
Dec 31, 2024
Dec 31, 2024