Southwest Airlines Company (LUV)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 21,022,000 | 18,544,000 | 14,036,000 | 11,328,000 | 15,487,000 |
| Payables | US$ in thousands | 1,862,000 | 2,004,000 | 1,282,000 | 931,000 | 1,574,000 |
| Payables turnover | 11.29 | 9.25 | 10.95 | 12.17 | 9.84 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $21,022,000K ÷ $1,862,000K
= 11.29
The payables turnover ratio for Southwest Airlines Co has consistently been reported as 0.00 for the past five years from 2019 to 2023. This ratio indicates that Southwest Airlines Co is not effectively managing its accounts payable. A low or zero payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships with vendors or result in missed discount opportunities for early payment. Furthermore, a consistently low payables turnover ratio may also indicate liquidity issues or inefficient working capital management within the company. Southwest Airlines Co may consider reviewing and improving its payables management process to enhance efficiency and maintain healthy vendor relationships.
Peer comparison
Dec 31, 2023