Southwest Airlines Company (LUV)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 22,060,000 | 22,360,000 | 22,066,000 | 21,568,000 | 21,023,000 | 20,173,000 | 19,855,000 | 19,424,000 | 18,545,000 | 17,525,000 | 16,529,000 | 15,291,000 | 14,037,000 | 12,535,000 | 11,405,000 | 10,618,000 | 11,327,000 | 12,870,000 | 13,935,000 | 15,239,000 |
| Payables | US$ in thousands | 1,818,000 | 1,518,000 | 2,028,000 | 1,949,000 | 1,862,000 | 1,736,000 | 1,882,000 | 1,729,000 | 2,004,000 | 1,553,000 | 1,908,000 | 1,648,000 | 1,282,000 | 1,229,000 | 1,378,000 | 1,094,000 | 931,000 | 980,000 | 970,000 | 1,043,000 |
| Payables turnover | 12.13 | 14.73 | 10.88 | 11.07 | 11.29 | 11.62 | 10.55 | 11.23 | 9.25 | 11.28 | 8.66 | 9.28 | 10.95 | 10.20 | 8.28 | 9.71 | 12.17 | 13.13 | 14.37 | 14.61 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $22,060,000K ÷ $1,818,000K
= 12.13
The payables turnover ratio of Southwest Airlines Company has shown some fluctuations over the observed period. The ratio indicates how efficiently the company manages its payables by comparing the cost of goods sold to its average accounts payable balance. A higher payables turnover ratio suggests that the company is able to quickly pay off its suppliers, which could be a positive sign of strong liquidity and efficient inventory management.
In the provided data, the payables turnover ratio ranged from 8.28 to 14.73 over the last five years. The ratio peaked at 14.73 on September 30, 2024, showing that Southwest Airlines was able to turnover its payables 14.73 times during the year. Conversely, the lowest ratio of 8.28 was recorded on June 30, 2021, indicating a slower turnover of payables during that period.
Overall, the trend in Southwest Airlines' payables turnover suggests some variability, with periods of higher and lower turnover ratios. Further analysis and comparison to industry benchmarks could provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2024