Southwest Airlines Company (LUV)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,288,000 | 9,497,000 | 9,158,000 | 8,359,000 | 9,492,000 | 10,443,000 | 13,234,000 | 13,098,000 | 12,480,000 | 12,980,000 | 14,124,000 | 11,971,000 | 11,063,000 | 12,109,000 | 12,351,000 | 3,940,000 | 2,548,000 | 2,488,000 | 2,446,000 | 2,344,000 |
| Short-term investments | US$ in thousands | 2,186,000 | 2,236,000 | 3,021,000 | 3,315,000 | 2,800,000 | 3,230,000 | 3,197,000 | 2,642,000 | 3,024,000 | 3,024,000 | 2,751,000 | 2,377,000 | 2,271,000 | 2,453,000 | 2,106,000 | 1,605,000 | 1,524,000 | 1,528,000 | 1,540,000 | 1,517,000 |
| Total current liabilities | US$ in thousands | 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 | 8,952,000 | 8,629,000 | 8,611,000 | 8,723,000 |
| Cash ratio | 0.94 | 0.97 | 1.04 | 1.03 | 1.18 | 1.31 | 1.40 | 1.56 | 1.69 | 1.75 | 1.35 | 1.75 | 1.78 | 1.87 | 1.54 | 0.54 | 0.45 | 0.47 | 0.46 | 0.44 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,288,000K
+ $2,186,000K)
÷ $12,256,000K
= 0.94
The cash ratio of Southwest Airlines Co has been gradually decreasing over the past few quarters, indicating a potential decrease in its ability to cover short-term liabilities solely with its cash and cash equivalents. The ratio stood at 0.98 in Q4 2023, which means the company had $0.98 in cash and cash equivalents for every $1 of current liabilities. This suggests a slightly lower liquidity position compared to the previous quarter.
The downward trend in the cash ratio may raise concerns about the company's liquidity management and its ability to meet immediate financial obligations without relying on other sources of funds. It is essential for investors and stakeholders to monitor this trend to ensure Southwest Airlines Co maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2023