Southwest Airlines Company (LUV)
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 | 22,060,000 | 22,360,000 | 22,066,000 | 21,568,000 | 21,023,000 | 20,173,000 | 19,855,000 | 19,424,000 | 18,545,000 | 17,525,000 | 16,529,000 | 15,291,000 | 14,037,000 | 12,535,000 | 11,405,000 | 10,618,000 | 11,327,000 | 12,870,000 | 13,935,000 | 15,239,000 |
| Inventory | US$ in thousands | 800,000 | 770,000 | 784,000 | 812,000 | 807,000 | 799,000 | 714,000 | 736,000 | 790,000 | 776,000 | 751,000 | 623,000 | 537,000 | 511,000 | 464,000 | 448,000 | 414,000 | 426,000 | 422,000 | 518,000 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $22,060,000K ÷ $800,000K
= 27.58
Over the analyzed period, Southwest Airlines Company's inventory turnover ratio has shown some fluctuations. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the company sells and replaces its inventory during a specific period.
In March 2020, the inventory turnover was 29.42, indicating that Southwest Airlines sold and replaced its inventory approximately 29.42 times during that period. The ratio increased to 33.02 by June 2020, suggesting an improvement in inventory management efficiency. However, in the following quarters, the ratio fluctuated, reaching a low of 22.01 in June 2022. This drop could signify potential issues, such as excess inventory levels or difficulties in selling existing inventory.
From June 2022 onwards, the inventory turnover ratio showed a gradual improvement, reaching 29.04 by September 2024. This uptrend indicates better inventory management practices or potentially stronger demand for Southwest Airlines' products. Overall, the company's inventory turnover ratio fluctuated over the period but generally improved towards the end of the analyzed timeframe.
Peer comparison
Dec 31, 2024
Dec 31, 2024