Southwest Airlines Company (LUV)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 12.14 | 11.29 | 9.25 | 10.95 | 12.17 | |
| Number of days of payables | days | 30.08 | 32.33 | 39.44 | 33.34 | 30.00 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.14
= 30.08
Southwest Airlines Company's number of days of payables have shown a fluctuating trend over the years based on the provided data. The number of days of payables was at 30.00 days as of December 31, 2020, slightly increased to 33.34 days by December 31, 2021, further rose to 39.44 days by December 31, 2022, then decreased to 32.33 days by December 31, 2023, and finally dropped to 30.08 days by December 31, 2024.
This indicates that Southwest Airlines has been managing its payables effectively, with a moderate increase in 2021 and 2022, followed by a decrease in 2023 and 2024. Monitoring the number of days of payables can provide insights into the company's payment policies, supplier relationships, and liquidity position. Overall, the downward trend in the number of days of payables in the later years suggests improved efficiency in managing payables.
Peer comparison
Dec 31, 2024