Southwest Airlines Company (LUV)
Working capital 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 |
| Total current assets | US$ in thousands | 11,274,000 | 11,930,000 | 12,751,000 | 13,281,000 | 13,955,000 | 14,631,000 | 14,661,000 | 14,274,000 | 14,808,000 | 16,418,000 | 19,396,000 | 18,822,000 | 18,036,000 | 18,554,000 | 19,188,000 | 16,100,000 | 15,173,000 | 16,133,000 | 15,872,000 | 7,028,000 |
| Total current liabilities | US$ in thousands | 12,276,000 | 13,489,000 | 14,113,000 | 12,225,000 | 12,256,000 | 12,112,000 | 11,728,000 | 11,329,000 | 10,378,000 | 10,416,000 | 11,711,000 | 10,069,000 | 9,164,000 | 9,135,000 | 12,476,000 | 8,182,000 | 7,506,000 | 7,804,000 | 9,361,000 | 10,241,000 |
| Working capital turnover | — | — | — | 25.08 | 15.22 | 10.00 | 8.46 | 8.30 | 5.28 | 3.71 | 2.70 | 2.06 | 1.73 | 1.32 | 1.44 | 0.85 | 1.18 | 1.53 | 2.55 | — |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $27,401,000K ÷ ($11,274,000K – $12,276,000K)
= —
The working capital turnover ratio for Southwest Airlines Company has been showing fluctuations over the periods provided. The ratio measures how efficiently the company is able to generate revenue from its working capital. A higher turnover ratio indicates more efficient utilization of working capital.
From June 30, 2020, to March 31, 2024, the working capital turnover ratio steadily increased, indicating an improvement in the company's ability to generate revenue from its working capital. Notably, there was a significant spike in the ratio from March 31, 2024, where it reached 25.08, suggesting an exceptionally strong ability to generate revenue relative to working capital.
It is worth noting that there were periods where the working capital turnover ratio was not provided, marked as "—". These gaps in data should be considered when analyzing the trend of the ratio. Overall, the increasing trend in the working capital turnover ratio for Southwest Airlines Company suggests improved efficiency in utilizing its working capital to generate revenue.
Peer comparison
Dec 31, 2024