SkyWest Inc (SKYW)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,324,750	1,333,740	1,045,820	2,926,800	3,536,810
Inventory	US$ in thousands	127,114	123,209	104,093	91,196	110,503
Inventory turnover		10.42	10.83	10.05	32.09	32.01

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,324,750K ÷ $127,114K
= 10.42

The inventory turnover ratio for Skywest Inc. has been consistently reported as 0.00 for the past five years, from 2019 to 2023. This indicates that the company is not effectively managing its inventory levels in relation to its sales. A low or zero inventory turnover ratio could suggest issues such as overstocking, obsolete inventory, or slow-moving products. It may also point towards poor demand forecasting or inefficient inventory management practices within the company. Further analysis and investigation into the reasons behind the consistently low inventory turnover ratio are warranted to address these potential operational inefficiencies and optimize the company's inventory management strategy.