United Airlines Holdings Inc (UAL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 34,027,000 | 29,543,000 | 15,750,000 | 13,878,000 | 28,352,000 |
| Inventory | US$ in thousands | 1,561,000 | 1,109,000 | 983,000 | 932,000 | 1,072,000 |
| Inventory turnover | 21.80 | 26.64 | 16.02 | 14.89 | 26.45 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $34,027,000K ÷ $1,561,000K
= 21.80
Based on the data provided, United Airlines Holdings Inc has consistently reported an inventory turnover ratio of 0.00 for the past five years (from Dec 31, 2019, to Dec 31, 2023). A consistently low or zero inventory turnover ratio can indicate that the company is not effectively managing its inventory levels or that it may have excessive inventory on hand relative to its sales. This could lead to increased storage costs, obsolescence risks, and potential liquidity issues. It is important for the company to address this aspect of its operations to improve efficiency and profitability in the long run.
Peer comparison
Dec 31, 2023