Delta Air Lines Inc (DAL)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Inventory turnover		23.12	25.14	21.07	21.50	21.77	19.93	17.66	13.46	15.93	27.00	27.24	32.34	47.10	60.71	72.39	67.84	57.38	35.18	49.18	47.26
DOH	days	15.79	14.52	17.32	16.97	16.77	18.31	20.66	27.12	22.91	13.52	13.40	11.29	7.75	6.01	5.04	5.38	6.36	10.37	7.42	7.72

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 23.12
= 15.79

Days of inventory on hand (DOH) is a financial metric that measures the average number of days it takes for a company to sell its inventory. A lower DOH indicates that the company is managing its inventory efficiently, while a higher DOH may suggest potential issues such as overstocking or slow inventory turnover.

Analyzing Delta Air Lines Inc's DOH over the past several quarters, we observe fluctuations in the metric. In the most recent quarter, as of March 31, 2024, the DOH stands at 15.79 days, showing a slight increase from the previous quarter. This implies that Delta Air Lines took, on average, about 15.79 days to sell its inventory.

Looking further back, the DOH has displayed variability over time, ranging from a low of 5.04 days in September 2020 to a high of 27.12 days in June 2022. The decreasing trend in DOH from 2020 to 2021 suggests an improvement in inventory management efficiency during that period. Subsequently, there was an increase in DOH in 2022, indicating a potential buildup of inventory relative to sales.

It is essential for Delta Air Lines to monitor its DOH closely to ensure optimal inventory levels that balance the need to meet customer demand with the cost of holding excess inventory. By evaluating trends in DOH over multiple periods, the company can make informed decisions regarding its inventory management strategies to support overall operational efficiency and financial performance.