Southwest Airlines Company (LUV)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 5,420,000 | 4,835,000 | 4,778,000 | 1,345,000 | -2,538,000 |
| Revenue | US$ in thousands | 27,482,000 | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 |
| Gross profit margin | 19.72% | 18.70% | 20.49% | 8.74% | -28.05% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $5,420,000K ÷ $27,482,000K
= 19.72%
The gross profit margin of Southwest Airlines Company has shown a significant improvement over the period from December 31, 2020, to December 31, 2024.
At the end of 2020, Southwest Airlines had a negative gross profit margin of -28.05%, indicating that the cost of goods sold exceeded the revenue generated from sales. However, by the end of 2021, the company managed to turn this around, achieving a positive gross profit margin of 8.74%. This improvement continued into 2022 and 2023, with gross profit margins of 20.49% and 18.70% respectively.
By the end of 2024, Southwest Airlines further improved its gross profit margin to 19.72%, showcasing consistent growth in profitability and efficiency in managing its production costs. This positive trend in the gross profit margin suggests that Southwest Airlines has been able to effectively control its cost of goods sold while increasing its revenue, ultimately leading to improved profitability over the years.
Peer comparison
Dec 31, 2024