Southwest Airlines Company (LUV)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 | 22,426,000 |
| Total assets | US$ in thousands | 36,487,000 | 35,369,000 | 36,320,000 | 34,588,000 | 25,895,000 |
| Total asset turnover | 0.71 | 0.66 | 0.42 | 0.26 | 0.87 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $25,857,000K ÷ $36,487,000K
= 0.71
Southwest Airlines Co's total asset turnover has shown fluctuations over the past five years. The ratio increased from 0.26 in 2020 to 0.43 in 2021, indicating an improvement in the company's efficiency in generating revenue from its total assets. However, there was a decline in 2022 to 0.67, suggesting a decrease in asset utilization efficiency. In 2023, the total asset turnover further decreased to 0.72.
The varying trend in total asset turnover may be attributed to changes in the company's operational efficiency, asset management, or shifts in the airline industry dynamics. It is essential for Southwest Airlines Co to closely monitor its asset turnover ratio to ensure optimal utilization of its assets to generate revenue effectively.
Peer comparison
Dec 31, 2023