Alaska Air Group (FRA:ALK) Inventory Turnover : 18.96 (As of Mar. 2024)

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What is Alaska Air Group 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. Alaska Air Group's Cost of Goods Sold for the three months ended in Mar. 2024 was €1,915 Mil. Alaska Air Group's Average Total Inventories for the quarter that ended in Mar. 2024 was €101 Mil. Alaska Air Group's Inventory Turnover for the quarter that ended in Mar. 2024 was 18.96.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Alaska Air Group's Days Inventory for the three months ended in Mar. 2024 was 4.81.

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. Alaska Air Group's Inventory-to-Revenue for the quarter that ended in Mar. 2024 was 0.05.

Alaska Air Group Inventory Turnover Historical Data

The historical data trend for Alaska Air Group'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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Alaska Air Group Inventory Turnover Chart

Alaska Air Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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104.17

58.60

83.90

98.49

76.72

Alaska Air Group 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															19.75	19.24	19.38	18.51	18.96

Alaska Air Group Inventory Turnover Calculation

Alaska Air Group'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 )
=	7846.769	/ (	(98.176	+	106.372)	/	2 )
=	7846.769	/	102.274
=	76.72

Alaska Air Group'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 )
=	1915.44	/ (	(106.372	+	95.68)	/	2 )
=	1915.44	/	101.026
=	18.96

Alaska Air Group (FRA:ALK) 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.

Alaska Air Group'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
	=	101.026	/	1915.44	*	365 / 4
	=	4.81

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.

Alaska Air Group'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 )
	=	101.026	/	2053.44
	=	0.05

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.

Alaska Air Group Inventory Turnover Related Terms

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Alaska Air Group (FRA:ALK) Business Description

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ALK:USA

Address

19300 International Boulevard, Seattle, WA, USA, 98188

Website

https://www.alaskaair.com

Alaska Air Group Inc operates two airlines, Alaska and Horizon in three operating segments. The Mainline segment includes scheduled air transportation on Alaska's Boeing and Airbus jet aircraft for passengers and cargo throughout the U.S., and in parts of Mexico, and Costa Rica. The Regional segment includes Horizon's and other third-party carriers' scheduled air transportation for passengers across a shorter distance network within the U.S. and Canada under capacity purchase agreements (CPA). The Horizon segment includes the capacity sold to Alaska under a CPA. It earns revenues from Passenger tickets, including ticket breakage and net of taxes and fees, Passenger ancillary and Mileage Plan passenger revenue.