Southwest Airlines Company (LUV)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,835,000 | 4,778,000 | 1,345,000 | -2,538,000 | 6,920,000 |
| Revenue | US$ in thousands | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 | 22,426,000 |
| Gross profit margin | 18.70% | 20.49% | 8.74% | -28.05% | 30.86% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,835,000K ÷ $25,857,000K
= 18.70%
Southwest Airlines Co has consistently maintained a gross profit margin of 100% over the past five years, from December 31, 2019, to December 31, 2023. This indicates that the company is effectively managing its production costs and generating strong revenues from its operations. A gross profit margin of 100% means that the company is able to cover all its production costs, resulting in no cost of goods sold. While a high gross profit margin is generally positive, it is essential to also evaluate other financial metrics and performance indicators to gain a comprehensive understanding of the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023