Southwest Airlines Company (LUV)

Days of inventory on hand (DOH)

		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
Inventory turnover		27.58	29.04	28.15	26.56	26.05	25.25	27.81	26.39	23.47	22.58	22.01	24.54	26.14	24.53	24.58	23.70	27.36	30.21	33.02	29.42
DOH	days	13.24	12.57	12.97	13.74	14.01	14.46	13.13	13.83	15.55	16.16	16.58	14.87	13.96	14.88	14.85	15.40	13.34	12.08	11.05	12.41

December 31, 2024 calculation

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

The Days of Inventory on Hand (DOH) for Southwest Airlines Company has shown some fluctuations over the past few years. The trend indicates that the company has been able to manage its inventory levels efficiently.

From March 31, 2020, to December 31, 2021, there was a general increase in the DOH metric from 12.41 days to 13.96 days. This could signify a potential buildup of inventory levels during this period.

However, in the subsequent quarters from March 31, 2022, to December 31, 2024, the DOH metric fluctuated within a narrower range, showing a mix of decreases and slight increases. This suggests that Southwest Airlines may have made adjustments to their inventory management practices to maintain optimal inventory levels.

Overall, the DOH metric for Southwest Airlines ranged from a low of 11.05 days to a high of 16.58 days over the analyzed period. It is important for the company to strike a balance in managing their inventory to ensure they have enough stock to meet demand while avoiding excess inventory holding costs. Further analysis into the factors affecting inventory turnover and management strategies could provide more insights into Southwest Airlines' operational efficiency.