Southwest Airlines Company (LUV)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,509,000 | 8,503,000 | 8,142,000 | 8,367,000 | 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 |
| Short-term investments | US$ in thousands | 1,216,000 | 879,000 | 1,860,000 | 2,145,000 | 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 |
| Receivables | US$ in thousands | 178,000 | 173,000 | 236,000 | 203,000 | 337,000 | 434,000 | 440,000 | 505,000 | 326,000 | 541,000 | 557,000 | 867,000 | 784,000 | 931,000 | 819,000 | 713,000 | 775,000 | 337,000 | 252,000 | 126,000 |
| 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 |
| Quick ratio | 0.73 | 0.71 | 0.73 | 0.88 | 0.96 | 1.00 | 1.08 | 1.08 | 1.22 | 1.36 | 1.45 | 1.65 | 1.78 | 1.85 | 1.42 | 1.84 | 1.88 | 1.91 | 1.57 | 0.55 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,509,000K
+ $1,216,000K
+ $178,000K)
÷ $12,276,000K
= 0.73
The quick ratio of Southwest Airlines Company has exhibited fluctuating trends over the past few years, reflecting its ability to meet its short-term financial obligations using its most liquid assets. Starting from 0.55 in March 2020, the quick ratio improved steadily to reach its peak at 1.91 in September 2020, indicating a stronger liquidity position. However, the ratio declined slightly in the subsequent quarters but generally remained above 1, indicating that Southwest Airlines had sufficient liquid assets to cover its current liabilities.
Southwest Airlines' quick ratio continued to fluctuate within a range of 1.36 to 1.91 until December 2022. From March 2023 onwards, the quick ratio showed a decreasing trend, falling to 0.88 by March 2024. This decline may suggest potential challenges in the company's ability to quickly cover its short-term obligations with its current liquid assets.
Overall, the trend in Southwest Airlines' quick ratio indicates some volatility in its liquidity position over the analyzed period. Management and investors should continue to monitor this ratio closely to ensure the company's ability to meet its short-term financial obligations without significant liquidity constraints.
Peer comparison
Dec 31, 2024