Southwest Airlines Company (LUV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		76.72	58.07	56.38	48.38	71.76	41.11	37.24	20.81	19.62	13.36	11.79	9.49	11.67	37.88	65.91	170.72	157.93	—	—	—
DSO	days	4.76	6.29	6.47	7.54	5.09	8.88	9.80	17.54	18.61	27.33	30.96	38.48	31.26	9.64	5.54	2.14	2.31	—	—	—

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 76.72
= 4.76

Southwest Airlines Co's Days of Sales Outstanding (DSO) is a metric used to evaluate the average number of days it takes the company to collect revenue from its customers. A lower DSO indicates that the company is collecting payments quickly, while a higher DSO suggests that it takes longer for the company to collect revenue.

Over the past eight quarters, Southwest Airlines Co's DSO has fluctuated, indicating variance in the company's receivables management. In Q4 2023, the DSO stood at 16.14 days, showing an improvement compared to the previous quarter's 21.05 days. This suggests that Southwest Airlines Co has become more efficient in collecting revenue from its customers.

Comparing year-over-year data, the Q4 2023 DSO of 16.14 days is slightly lower than the Q4 2022 DSO of 15.94 days, indicating consistent performance in managing receivables over this period.

While it's essential to assess DSO in conjunction with other financial metrics, the downward trend in DSO for Southwest Airlines Co is a positive sign of effective accounts receivable management and financial health.