Sun Country Airlines Holdings Inc (SNCY)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 693,260 | 664,034 | 624,371 | 409,854 |
| Inventory | US$ in thousands | 10,467 | 7,793 | 7,659 | 5,405 |
| Inventory turnover | 66.23 | 85.21 | 81.52 | 75.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $693,260K ÷ $10,467K
= 66.23
Sun Country Airlines Holdings Inc's inventory turnover has shown a positive trend over the four-year period from December 31, 2021, to December 31, 2024. The inventory turnover ratio has increased from 75.83 in 2021 to 66.23 in 2024. This indicates that the company is managing its inventory more efficiently and selling through its inventory at a faster rate in recent years.
A higher inventory turnover ratio generally implies that the company is selling its inventory quickly, which can lead to lower holding costs and improved cash flow. However, a significant increase in inventory turnover could also be a sign of potential sales challenges or aggressive discounting.
Overall, the increasing trend in Sun Country Airlines Holdings Inc's inventory turnover ratio suggests that the company is effectively managing its inventory levels to meet customer demand and optimize its operations.
Peer comparison
Dec 31, 2024