Southwest Airlines Co (FRA:SWN) Inventory Turnover: 7.36 (As of Mar. 2026)


FRA:SWN Southwest Airlines Co FRA:SWN
81 GF Score
Price €45.14
GF Value €35.85
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Southwest Airlines Co Inventory Turnover?

Southwest Airlines Co FRA:SWN +1.14% 81 Inventory Turnover is 7.36 as of Mar. 2026. GuruFocus rates FRA:SWN with a GF Score™ of 81/100 and a GF Value™ of €35.85 (Modestly Overvalued). The stock has 6 warning signs investors should review.

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. Southwest Airlines Co's Cost of Goods Sold for the three months ended in Mar. 2026 was €5,088 Mil. Southwest Airlines Co's Average Total Inventories for the quarter that ended in Mar. 2026 was €691 Mil. Southwest Airlines Co's Inventory Turnover for the quarter that ended in Mar. 2026 was 7.36.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Southwest Airlines Co's Days Inventory for the three months ended in Mar. 2026 was 12.40.

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. Southwest Airlines Co's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.11.

Southwest Airlines Co  (FRA:SWN) 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.

Southwest Airlines Co's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=691.1975/5087.93*365 / 4
=12.40

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.

Southwest Airlines Co's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=691.1975 / 6270.385
=0.11

* 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.

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.

Southwest Airlines Co Inventory Turnover Related Terms

Southwest Airlines Co Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Southwest Airlines Co'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.

Southwest Airlines Co Inventory Turnover Chart

Southwest Airlines Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.34 29.47 26.99 29.24 27.75

Southwest Airlines Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.90 7.30 7.34 7.58 7.36
FRA:SWN
81GF Score
Southwest Airlines Co FRA:SWN
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Southwest Airlines Co Inventory Turnover Calculation

Southwest Airlines Co's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Inventory Turnover (A: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2025 ) / ((Total Inventories (A: Dec. 2024 ) + Total Inventories (A: Dec. 2025 )) / count )
=19785.472 / ((764 + 661.85) / 2 )
=19785.472 / 712.925
=27.75

Southwest Airlines Co's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=5087.93 / ((661.85 + 720.545) / 2 )
=5087.93 / 691.1975
=7.36

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 7.36 mean?
Southwest Airlines Co (FRA:SWN) has a Inventory Turnover of 7.36 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Southwest Airlines Co and its competitors.
Is Southwest Airlines Co's Inventory Turnover too high?
Southwest Airlines Co's current Inventory Turnover is 7.36. Overall, Southwest Airlines Co has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Inventory Turnover compare to AAL and UAL?
Southwest Airlines Co's Inventory Turnover of 7.36 can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Transportation company?
A good Inventory Turnover depends on the Transportation industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Southwest Airlines Co and its competitors. Southwest Airlines Co's current Inventory Turnover is 7.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (FRA:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €35.85, compared to a current price of €45.14 — trading 25.9% above its estimated fair value. The current Inventory Turnover is 7.36. Southwest Airlines Co's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Inventory Turnover is 7.36 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Southwest Airlines Co (FRA:SWN) Overvalued in 2026?

Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued. The current stock price of €45.14 is trading 25.9% above its estimated GF Value™ of €35.85. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for FRA:SWN:

  • Inventory Turnover: 7.36
  • GF Value™: €35.85 vs. price of €45.14 (25.9% above fair value)
  • GF Score™: 81/100 with 6 warning signs

No single metric tells the full story. See the FRA:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Southwest Airlines Co Business Description

Address P.O. Box 36611, Dallas, TX, USA, 75235-1611
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
81GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€45.14
Price
€35.85
GF Value