Southwest Airlines Company (LUV)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.92 | 0.88 | 0.90 | 1.09 | 1.14 | 1.21 | 1.25 | 1.26 | 1.43 | 1.58 | 1.66 | 1.87 | 1.97 | 2.03 | 1.54 | 1.97 | 2.02 | 2.07 | 1.70 | 0.69 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $11,274,000K ÷ $12,276,000K
= 0.92
Based on the provided data, Southwest Airlines Company's current ratio has been fluctuating over the past few years. The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets.
Southwest Airlines' current ratio was relatively low at 0.69 on March 31, 2020, indicating potential liquidity concerns. However, the ratio improved significantly to 2.07 on September 30, 2020, and remained above 2 for the next few quarters, suggesting a strong ability to cover its short-term liabilities with current assets.
While the ratio decreased slightly to 1.54 on June 30, 2021, it remained above 1, reflecting a favorable liquidity position. Subsequently, the ratio fluctuated between 1.26 and 2.03 over the next few years, indicating some variability in Southwest Airlines' ability to meet short-term obligations.
The current ratio declined to 0.88 on September 30, 2024, potentially signaling a decrease in liquidity levels. However, it slightly improved to 0.92 by December 31, 2024. The decreasing trend in the current ratio towards the end of the reporting period may indicate a need for closer monitoring of liquidity management by Southwest Airlines.
Overall, while the current ratio of Southwest Airlines showed fluctuations over the period, it generally remained above 1, suggesting a reasonable ability to cover short-term obligations with current assets. Investors and stakeholders should continue to assess the company's liquidity position in relation to its short-term liabilities.
Peer comparison
Dec 31, 2024