Sun Country Airlines Holdings Inc (SNCY)

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
Cost of revenue (ttm)	US$ in thousands	693,260	682,045	678,970	670,250	663,480	658,500	647,398	649,289	624,370	578,361	534,690	468,271	409,853
Inventory	US$ in thousands	10,467	9,731	8,458	8,583	7,793	7,678	7,365	6,805	7,659	7,280	6,320	5,624	5,405
Inventory turnover		66.23	70.09	80.28	78.09	85.14	85.76	87.90	95.41	81.52	79.45	84.60	83.26	75.83

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $693,260K ÷ $10,467K
= 66.23

Sun Country Airlines Holdings Inc's inventory turnover has shown fluctuations over the past few years. The ratio indicates how efficiently the company is managing its inventory levels. A higher inventory turnover ratio generally signifies that the company is selling its inventory quickly, which is a positive indicator of efficient inventory management.

Looking at the data provided, we see that the inventory turnover ratio ranged from a low of 66.23 on December 31, 2024, to a high of 95.41 on March 31, 2023. The increasing trend from 2022 to 2023 suggests that the company was able to sell its inventory at a faster rate during that period. However, there was a slight decline in the ratio in the subsequent periods, indicating a potential slowdown in inventory turnover.

It is essential for Sun Country Airlines Holdings Inc to monitor its inventory turnover ratio regularly to ensure optimal management of its inventory levels. A consistently high or improving ratio can help the company reduce holding costs and prevent obsolescence of inventory.