Southwest Airlines Company (LUV)
Receivables 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 |
| Receivables | US$ in thousands | 178,000 | 173,000 | 236,000 | 203,000 | 337,000 | 434,000 | 440,000 | 505,000 | 326,000 | 541,000 | 557,000 | 867,000 | 784,000 | 931,000 | 819,000 | 713,000 | 775,000 | 337,000 | 252,000 | 126,000 |
| Receivables turnover | 153.94 | 157.45 | 113.81 | 130.45 | 76.72 | 58.07 | 56.38 | 48.38 | 71.76 | 41.11 | 37.24 | 20.81 | 19.62 | 13.36 | 11.79 | 9.49 | 11.67 | 37.88 | 65.91 | 170.72 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $27,401,000K ÷ $178,000K
= 153.94
The receivables turnover ratio measures how efficiently a company is collecting outstanding receivables during a specific period. For Southwest Airlines Company, the trend in receivables turnover over the period from March 31, 2020, to December 31, 2024, shows fluctuation.
The ratio started at a high of 170.72 on March 31, 2020, indicating the company collected receivables approximately 170 times during that period. Subsequently, the ratio decreased significantly to 11.67 by December 31, 2020, suggesting a slowdown in receivables turnover efficiency.
From March 31, 2021, to June 30, 2022, the receivables turnover remained relatively low, ranging between 9.49 and 37.24, with some fluctuations. However, from September 30, 2022, onwards, the ratio showed an upward trend, indicating an improvement in receivables turnover efficiency.
Notably, the ratio peaked at 157.45 on September 30, 2024, before slightly declining to 153.94 by December 31, 2024. This upward trend suggests that Southwest Airlines improved its collections process and efficiently managed its outstanding receivables during the latter part of the period under consideration.
Overall, the analysis of Southwest Airlines' receivables turnover ratio reveals fluctuations and improvements over time, indicating varying levels of efficiency in collecting outstanding receivables during the period examined.
Peer comparison
Dec 31, 2024