Southwest Airlines Company (LUV)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	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	15,529,000	16,343,000	16,394,000	16,336,000
Inventory	US$ in thousands	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	529,000	528,000	510,000	484,000
Inventory turnover		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	29.36	30.95	32.15	33.75

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $21,023,000K ÷ $807,000K
= 26.05

The inventory turnover ratio for Southwest Airlines Co has consistently been reported as 0.00 across all quarters measured, indicating that the company is not effectively managing its inventory levels or facing challenges in converting its inventory into sales. A low inventory turnover ratio may suggest inefficiencies in inventory management, excess stock levels, or poor demand forecasting. It also raises concerns about the potential for inventory obsolescence, storage costs, and reduced profitability. Key stakeholders should closely monitor Southwest Airlines Co's inventory management practices to address these issues and optimize their operational efficiency.