Southwest Airlines Company (LUV)
Receivables 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 |
| Receivables | US$ in thousands | 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 | 142,000 | — | — | — |
| Receivables turnover | 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 | 157.93 | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,856,000K ÷ $337,000K
= 76.72
The receivables turnover ratio for Southwest Airlines Co has fluctuated over the past eight quarters. In Q4 2023, the ratio was 22.61, indicating that the company collected its accounts receivable approximately 22.61 times during the quarter. This was an increase from Q3 2023 when the ratio was 17.34. The highest turnover ratio was seen in Q4 2022 at 22.90, while the lowest was in Q1 2022 at 10.89.
Overall, the upward trend in receivables turnover since Q1 2022 suggests that Southwest Airlines Co has been more efficient in collecting its receivables in recent quarters. A higher turnover ratio generally indicates that the company is effective in converting credit sales into cash quickly. This improvement in receivables turnover could be attributed to better credit management practices or a more efficient collection process.
However, it's essential to consider other factors such as industry norms and changes in business operations when interpreting the receivables turnover ratio. Further analysis of Southwest Airlines Co's financial health and performance indicators would provide a more comprehensive assessment of the company's overall financial position.
Peer comparison
Dec 31, 2023