Air New Zealand (NZSE:AIR) Inventory Turnover : 7.26 (As of Dec. 2023)

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What is Air New Zealand 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 New Zealand's Cost of Goods Sold for the six months ended in Dec. 2023 was NZ$879 Mil. Air New Zealand's Average Total Inventories for the quarter that ended in Dec. 2023 was NZ$121 Mil. Air New Zealand's Inventory Turnover for the quarter that ended in Dec. 2023 was 7.26.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Air New Zealand's Days Inventory for the six months ended in Dec. 2023 was 25.12.

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 New Zealand's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.04.

Air New Zealand Inventory Turnover Historical Data

The historical data trend for Air New Zealand'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 New Zealand Inventory Turnover Chart

Air New Zealand Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

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16.29

10.93

3.14

5.89

13.82

Air New Zealand Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															1.81	3.90	7.32	6.56	7.26

Air New Zealand Inventory Turnover Calculation

Air New Zealand's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	1499	/ (	(98	+	119)	/	2 )
=	1499	/	108.5
=	13.82

Air New Zealand's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Jun. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	879	/ (	(119	+	123)	/	2 )
=	879	/	121
=	7.26

Air New Zealand (NZSE:AIR) 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 New Zealand's Days Inventory for the six months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	121	/	879	*	365 / 2
	=	25.12

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 New Zealand's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	121	/	3358
	=	0.04

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 New Zealand Inventory Turnover Related Terms

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Air New Zealand (NZSE:AIR) Business Description

Industry

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ANZLY:USA ANZFF:USA BZU:Germany AIZ:Australia

Address

185 Fanshawe Street, Air New Zealand House, Auckland, NTL, NZL, 1010

Website

https://www.airnewzealand.co.nz

Air New Zealand, majority owned by the New Zealand Government, provides air passenger and cargo transport services within New Zealand, as well as to and from Australia, the South-West Pacific, Asia, North America, the United Kingdom, and South America. Air New Zealand also encompasses business units providing engineering and ground handling services. Air New Zealand dominates the local market, with around 80% market share, although the majority of revenue is derived from international and trans-Tasman activity.