Delta Air Lines Inc (DAL)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	33,566,000	33,029,000	31,753,000	30,922,000	30,016,000	28,383,000	26,019,000	23,336,000	20,587,000	18,735,000	17,460,000	20,730,000	21,524,000	22,889,000	25,555,000	23,946,000	25,191,000	25,685,000	27,933,000	27,885,000
Inventory	US$ in thousands	1,452,000	1,314,000	1,507,000	1,438,000	1,379,000	1,424,000	1,473,000	1,734,000	1,292,000	694,000	641,000	641,000	457,000	377,000	353,000	353,000	439,000	730,000	568,000	590,000
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

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $33,566,000K ÷ $1,452,000K
= 23.12

Inventory turnover for Delta Air Lines Inc has fluctuated over the past few years, ranging from a low of 13.46 in June 2022 to a high of 72.39 in September 2020. The average inventory turnover ratio appears to be around 30, indicating that on average, Delta Air Lines Inc sells and replaces its inventory approximately 30 times a year.

A high inventory turnover ratio suggests that the company is efficiently managing its inventory by selling goods quickly and restocking at a fast pace. This can be a positive sign of strong sales and effective inventory management.

Conversely, a low inventory turnover ratio may indicate overstocking, obsolescence, or slow-moving inventory, which can tie up capital and lead to potential losses. It is important for Delta Air Lines Inc to monitor its inventory turnover consistently to ensure optimal inventory management practices.