Southwest Airlines Company (LUV)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 27,401,000 | 27,239,000 | 26,858,000 | 26,481,000 | 25,856,000 | 25,202,000 | 24,805,000 | 24,431,000 | 23,395,000 | 22,240,000 | 20,744,000 | 18,041,000 | 15,380,000 | 12,435,000 | 9,655,000 | 6,763,000 | 9,048,000 | 12,764,000 | 16,610,000 | 21,511,000 |
| Property, plant and equipment | US$ in thousands | 18,954,000 | 19,773,000 | 19,665,000 | 19,561,000 | 19,375,000 | 19,075,000 | 18,596,000 | 18,024,000 | 17,342,000 | 16,337,000 | 15,594,000 | 14,937,000 | 14,842,000 | 15,056,000 | 15,242,000 | 15,648,000 | 15,831,000 | 16,056,000 | 16,247,000 | 16,989,000 |
| Fixed asset turnover | 1.45 | 1.38 | 1.37 | 1.35 | 1.33 | 1.32 | 1.33 | 1.36 | 1.35 | 1.36 | 1.33 | 1.21 | 1.04 | 0.83 | 0.63 | 0.43 | 0.57 | 0.79 | 1.02 | 1.27 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $27,401,000K ÷ $18,954,000K
= 1.45
The fixed asset turnover ratio for Southwest Airlines Company has shown fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The ratio reflects the company's efficiency in generating revenues from its fixed assets.
Initially, the ratio was at 1.27 on March 31, 2020, indicating that the company generated $1.27 in revenue for every $1 invested in fixed assets. However, the ratio gradually decreased, reaching its lowest point of 0.43 on March 31, 2021. This sharp decline may suggest a decrease in sales relative to fixed asset investments during this period.
Subsequently, the fixed asset turnover ratio showed a recovery trend, increasing steadily to 1.45 by December 31, 2024. This improvement indicates that the company was able to generate $1.45 in revenue for each dollar invested in fixed assets at the end of the period.
Overall, the increasing trend in the fixed asset turnover ratio suggests that Southwest Airlines Company has been able to enhance its operational efficiency in utilizing its fixed assets to generate revenue, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024