Delta Air Lines Inc (DAL)

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	34,642,000	34,530,000	34,222,000	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
Inventory	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	694,000	641,000	641,000	457,000	377,000	353,000	353,000	439,000
Inventory turnover		—	—	—	—	—	—	—	—	—	—	—	—	27.00	27.24	32.34	47.10	60.71	72.39	67.84	57.38

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $34,642,000K ÷ $—K
= —

Inventory turnover is a financial ratio that measures how efficiently a company manages its inventory by calculating the number of times it sells and replaces its inventory during a specific period. A higher inventory turnover ratio indicates better inventory management and efficiency.

Analyzing the inventory turnover of Delta Air Lines Inc based on the provided data reveals some notable trends. From March 31, 2020, to September 30, 2021, the inventory turnover steadily increased from 57.38 to 27.24, indicating an improvement in inventory management efficiency during this period. This upward trend suggests that Delta Air Lines was selling and replenishing its inventory at a faster pace.

However, from September 30, 2021, to June 30, 2021, there was a significant drop in the inventory turnover ratio from 27.24 to 32.34, followed by a further decline to 27.00 by December 31, 2021. These decreases may indicate possible challenges in inventory turnover efficiency or changes in Delta Air Lines' operations impacting its inventory management.

The data shows that as of December 31, 2021, the inventory turnover ratio stood at 27.00, suggesting that, on average, Delta Air Lines sold and replaced its inventory 27 times during that year. The absence of data for the period from March 31, 2022, onwards limits further analysis of the company's recent inventory turnover performance.

In conclusion, while Delta Air Lines demonstrated an improvement in inventory turnover efficiency over the initial period, there were subsequent declines in the ratio, indicating potential challenges or shifts in inventory management effectiveness. Monitoring future data will be crucial to understanding the company's ongoing performance in this area.