Southwest Airlines Company (LUV)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 27,482,000 | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 |
| Total assets | US$ in thousands | 33,750,000 | 36,487,000 | 35,369,000 | 36,320,000 | 34,588,000 |
| Total asset turnover | 0.81 | 0.71 | 0.66 | 0.42 | 0.26 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $27,482,000K ÷ $33,750,000K
= 0.81
Southwest Airlines Company's total asset turnover has shown a positive trend over the years, indicating an improvement in its efficiency in generating revenue from its total assets. The total asset turnover ratio increased from 0.26 in December 31, 2020, to 0.81 in December 31, 2024. This suggests that the company is utilizing its assets more efficiently to generate sales. A higher total asset turnover ratio is generally seen as favorable, as it signifies the company's ability to generate more revenue for each dollar of assets employed. Southwest Airlines Company's increasing total asset turnover ratio reflects its effective management of assets to drive revenue growth.
Peer comparison
Dec 31, 2024