United Airlines Holdings Inc (UAL)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	37,643,000	38,518,000	34,315,000	23,913,000	20,385,000
Inventory	US$ in thousands	1,572,000	1,561,000	1,109,000	983,000	932,000
Inventory turnover		23.95	24.68	30.94	24.33	21.87

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $37,643,000K ÷ $1,572,000K
= 23.95

United Airlines Holdings Inc's inventory turnover has shown an increasing trend over the period from December 31, 2020, to December 31, 2024. The inventory turnover ratio was 21.87 in December 2020, which indicates that the company turned over its inventory approximately 21.87 times during the year.

By December 31, 2024, the inventory turnover ratio had increased to 23.95, suggesting that the company improved its efficiency in managing inventory as it was able to turn over its inventory nearly 24 times during the year.

Although there was a slight decrease in inventory turnover from December 31, 2022 (30.94) to December 31, 2023 (24.68), the overall trend indicates that United Airlines Holdings Inc has been effectively managing its inventory levels and turning over its inventory at a faster rate over the period analyzed.

The increase in inventory turnover ratio generally indicates that the company is selling its inventory more quickly, which can lead to lower carrying costs, reduced risk of obsolescence, and potentially improved cash flows. It also suggests that United Airlines Holdings Inc has been successful in aligning its inventory levels with customer demand and optimizing its supply chain management processes.