JetBlue Airways Corp (JBLU)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 7,534,000 | 7,414,000 | 5,272,000 | 4,052,000 | 5,586,000 |
| Inventory | US$ in thousands | 109,000 | 87,000 | 74,000 | 71,000 | 81,000 |
| Inventory turnover | 69.12 | 85.22 | 71.24 | 57.07 | 68.96 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $7,534,000K ÷ $109,000K
= 69.12
The inventory turnover ratios for Jetblue Airways Corp for the past five years have all been reported as 0.00. This indicates that the company has not been able to effectively manage its inventory levels relative to its cost of goods sold. A low or zero inventory turnover ratio may suggest excess or obsolete inventory, inefficient inventory management, or issues with demand forecasting.
A consistently low inventory turnover can lead to increased holding costs, storage expenses, and potential markdowns or write-offs of obsolete inventory. It may also point towards potential liquidity issues if inventory is tied up without generating sales. Jetblue Airways Corp may need to review and improve its inventory management practices, such as optimizing purchasing and production processes, revising inventory policies, and enhancing demand forecasting accuracy to increase efficiency and profitability.
Peer comparison
Dec 31, 2023