Air China (FRA:AD2) Inventory Turnover : 9.35 (As of Mar. 2024)

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What is Air China Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Air China's Cost of Goods Sold for the three months ended in Mar. 2024 was €4,948 Mil. Air China's Average Total Inventories for the quarter that ended in Mar. 2024 was €529 Mil. Air China's Inventory Turnover for the quarter that ended in Mar. 2024 was 9.35.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Air China's Days Inventory for the three months ended in Mar. 2024 was 9.76.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Air China's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.10.

Air China Inventory Turnover Historical Data

The historical data trend for Air China's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Air China Inventory Turnover Chart

Air China Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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57.09

37.85

46.06

35.53

42.01

Air China Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover	Get a 7-Day Free Trial															9.00	9.21	10.02	9.65	9.35

Air China Inventory Turnover Calculation

Air China's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	17211.207	/ (	(346.341	+	472.977)	/	2 )
=	17211.207	/	409.659
=	42.01

Air China's Inventory Turnover for the quarter that ended in Mar. 2024 is calculated as

	Inventory Turnover (Q: Mar. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2024 )	/ (	(Total Inventories (Q: Dec. 2023 )	+	Total Inventories (Q: Mar. 2024 ))	/	count )
=	4947.641	/ (	(472.977	+	585.207)	/	2 )
=	4947.641	/	529.092
=	9.35

Air China (FRA:AD2) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Air China's Days Inventory for the three months ended in Mar. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2024 )	/	Cost of Goods Sold (Q: Mar. 2024 )	*	Days in Period
	=	529.092	/	4947.641	*	365 / 4
	=	9.76

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Air China's Inventory to Revenue for the quarter that ended in Mar. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	529.092	/	5118.445
	=	0.10

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Air China Inventory Turnover Related Terms

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Air China (FRA:AD2) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Air China Ltd (FRA:AD2) » Definitions » Inventory Turnover

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Traded in Other Exchanges

AIRYY:USA AICAF:USA 00753:Hong Kong 601111:China AD2:Austria

Address

30 Tianzhu Road, Airport Industrial Zone, Blue Sky Mansion, Shunyi District, Beijing, CHN, 101312

Website

http://www.airchina.com.cn

Air China is based in Beijing. It is one of the largest state-owned airlines and the flag carrier in China. The group operated a fleet of 762 aircraft as of 2022 and carried more than 115 million passengers in prepandemic 2019. It runs a spoke-and-hub model under which it gathers and distributes passengers from air hubs such as Beijing, Chengdu, and Shanghai. The group's route network extends to over 187 destinations and 43 countries and regions.

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