Southwest Airlines Company (LUV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 21,022,000 | 18,544,000 | 14,036,000 | 11,328,000 | 15,487,000 |
| Inventory | US$ in thousands | 807,000 | 790,000 | 537,000 | 414,000 | 529,000 |
| Inventory turnover | 26.05 | 23.47 | 26.14 | 27.36 | 29.28 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $21,022,000K ÷ $807,000K
= 26.05
Southwest Airlines Co's inventory turnover ratio has been consistently reported as 0.00 for the past five years, indicating that the company's inventory turnover rate is extremely low or potentially non-existent. This implies that the company is not efficiently managing its inventory levels or is facing challenges in selling its inventory effectively. A low inventory turnover ratio can suggest issues such as overstocking, obsolete inventory, or slow sales. Southwest Airlines Co may need to re-evaluate its inventory management practices to improve efficiency and optimize its inventory turnover going forward.
Peer comparison
Dec 31, 2023