Southwest Airlines Company (LUV)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,482,000 | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 |
| Property, plant and equipment | US$ in thousands | 18,954,000 | 19,375,000 | 17,342,000 | 14,842,000 | 15,831,000 |
| Fixed asset turnover | 1.45 | 1.33 | 1.34 | 1.04 | 0.57 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $27,482,000K ÷ $18,954,000K
= 1.45
Southwest Airlines Company's fixed asset turnover has shown a positive trend over the past five years. The ratio increased consistently from 0.57 in December 2020 to 1.45 in December 2024. This indicates that the company has been able to generate more revenue for each dollar invested in fixed assets. The improvement in fixed asset turnover suggests that Southwest Airlines has been effectively utilizing its fixed assets to generate sales and drive profitability. High fixed asset turnover is generally a positive sign of operational efficiency and effective asset management. Southwest Airlines' increasing fixed asset turnover ratio reflects its ability to efficiently use its fixed assets to generate revenue over the years.
Peer comparison
Dec 31, 2024