Southwest Airlines Company (LUV)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		27.58	26.05	23.47	26.14	27.36
DOH	days	13.24	14.01	15.55	13.96	13.34

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 27.58
= 13.24

The days of inventory on hand (DOH) for Southwest Airlines Company have shown some fluctuations over the past five years. In December 2020, the company had 13.34 days of inventory on hand, which increased to 13.96 days by December 2021. However, in December 2022, this metric rose further to 15.55 days before slightly decreasing to 14.01 days by December 2023. By December 2024, the DOH had decreased to 13.24 days.

Overall, the trend in DOH indicates that Southwest Airlines has managed its inventory levels reasonably well, with fluctuations suggesting potential adjustments in inventory management strategies. A lower DOH generally implies efficient inventory management, while a higher DOH could indicate excess inventory or potential challenges in demand forecasting. Southwest Airlines may need to closely monitor its inventory levels to ensure optimal utilization of resources and minimize carrying costs in the future.