Southwest Airlines Company (LUV)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 22,426,000 | 22,401,000 | 22,337,000 | 22,170,000 |
| Property, plant and equipment | US$ in thousands | 19,250,000 | 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 | 17,025,000 | 17,842,000 | 17,733,000 | 17,773,000 |
| Fixed asset turnover | 1.34 | 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 | 1.32 | 1.26 | 1.26 | 1.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,856,000K ÷ $19,250,000K
= 1.34
Southwest Airlines Co's fixed asset turnover ratio reflects the efficiency with which the company generates revenue from its fixed assets. The trend analysis of the fixed asset turnover ratio over the past eight quarters shows relatively consistent performance, fluctuating between 1.23 and 1.39.
The average fixed asset turnover ratio for Southwest Airlines Co during this period is approximately 1.34, indicating that, on average, the company generates $1.34 in revenue for every dollar invested in fixed assets.
The relatively stable trend in the fixed asset turnover ratio suggests that Southwest Airlines Co has been effectively utilizing its fixed assets to generate revenue. A ratio above 1 indicates that the company is efficiently utilizing its fixed assets to generate sales. However, a comparison of the fixed asset turnover ratio with industry benchmarks and historical values of the company would provide more context on the company's performance relative to its peers and itself over time.
Peer comparison
Dec 31, 2023