Sun Country Airlines Holdings Inc (SNCY)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 664,034 | 624,371 | 409,854 |
| Inventory | US$ in thousands | 7,793 | 7,659 | 5,405 |
| Inventory turnover | 85.21 | 81.52 | 75.83 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $664,034K ÷ $7,793K
= 85.21
Based on the data provided, Sun Country Airlines Holdings Inc has recorded an inventory turnover of 0.00 for each of the past three years (2021, 2022, and 2023). A zero inventory turnover ratio indicates that the company has not effectively utilized its inventory or has very low sales relative to the amount of inventory held. This could suggest overstocking, obsolete inventory, or inefficiencies in inventory management.
A consistently low or zero inventory turnover ratio could result in increased holding costs, risk of inventory obsolescence, and reduced liquidity. It may also indicate potential issues with demand forecasting, production inefficiencies, or lack of effective inventory control systems.
Sun Country Airlines Holdings Inc should assess its inventory management practices, review its procurement and sales strategies, and consider optimizing inventory levels to improve its inventory turnover ratio and overall operational efficiency. Regular monitoring and improvement of inventory turnover can help the company enhance profitability and competitiveness in the airline industry.
Peer comparison
Dec 31, 2023