Southwest Airlines Company (LUV)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 154.39 | 76.73 | 71.54 | 19.62 | 11.67 | |
| DSO | days | 2.36 | 4.76 | 5.10 | 18.60 | 31.26 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 154.39
= 2.36
Southwest Airlines Company has shown a significant improvement in its Days of Sales Outstanding (DSO) over the period from 2020 to 2024. The DSO, a measure of how efficiently a company collects its accounts receivable, decreased from 31.26 days in December 2020 to 2.36 days in December 2024. This indicates that the company has been able to collect payments from customers more quickly, which can improve cash flow and overall financial health. The declining trend in DSO reflects effective credit control and collection efforts by Southwest Airlines Company, ultimately contributing to its financial stability and operational efficiency.
Peer comparison
Dec 31, 2024