Southwest Airlines Company (LUV)
Working capital 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 current assets | US$ in thousands | 11,274,000 | 13,955,000 | 14,808,000 | 18,036,000 | 15,173,000 |
| Total current liabilities | US$ in thousands | 12,276,000 | 12,256,000 | 10,378,000 | 9,164,000 | 7,506,000 |
| Working capital turnover | — | 15.22 | 5.26 | 1.73 | 1.18 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $27,482,000K ÷ ($11,274,000K – $12,276,000K)
= —
Southwest Airlines Company's working capital turnover has shown a positive trend over the years, increasing from 1.18 in December 31, 2020 to 15.22 in December 31, 2023. This improvement indicates the company's ability to efficiently utilize its working capital to generate revenue. However, the absence of data for December 31, 2024 makes it challenging to assess the latest performance. The significant rise in the working capital turnover ratio suggests that Southwest Airlines has been effectively managing its working capital to support business operations and potentially increase profitability. Nonetheless, it is essential for the company to sustain this positive momentum and monitor its working capital turnover closely for continued financial success.
Peer comparison
Dec 31, 2024