Southwest Airlines Company (LUV)
Quick 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 | 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 |
| Receivables | US$ in thousands | 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 | 142,000 | — | — | — |
| 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 |
| Quick ratio | 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 | 0.47 | 0.47 | 0.46 | 0.44 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,288,000K
+ $2,186,000K
+ $337,000K)
÷ $12,256,000K
= 0.96
The quick ratio of Southwest Airlines Co has been fluctuating over the past eight quarters, ranging from 1.07 to 1.81. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
The trend shows that the quick ratio has been decreasing gradually over the period under consideration. This declining trend may indicate that Southwest Airlines Co's liquidity position has weakened over time, as the ratio is getting closer to the industry benchmark of 1.
A quick ratio above 1 suggests that the company is able to cover its short-term liabilities comfortably with its quick assets. Therefore, despite the decreasing trend, Southwest Airlines Co has maintained a relatively healthy liquidity position throughout the quarters analyzed.
It is essential for investors and stakeholders to keep monitoring this ratio to assess the company's ability to meet its short-term financial obligations efficiently.
Peer comparison
Dec 31, 2023