Southwest Airlines Company (LUV)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 465,000 | 539,000 | 977,000 | -3,074,000 | 2,300,000 |
| Revenue | US$ in thousands | 25,857,000 | 23,322,000 | 15,381,000 | 9,048,000 | 22,426,000 |
| Net profit margin | 1.80% | 2.31% | 6.35% | -33.97% | 10.26% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $465,000K ÷ $25,857,000K
= 1.80%
Southwest Airlines Co's net profit margin has exhibited fluctuations over the past five years. In 2023, the net profit margin stood at 1.78%, showing a decrease from the previous year's 2.26%. This decline suggests that the company's profitability relative to its revenue decreased in 2023.
Comparing to 2021, when the net profit margin was 6.19%, 2023 figures indicate a significant decrease in profitability. The sharp drop in profitability from 2021 to 2020, where the net profit margin was -33.97%, was alarming but has since improved.
Despite the recent volatility in net profit margin figures, it is essential for Southwest Airlines Co to closely monitor and manage their expenses and revenue generation to enhance profitability and ensure long-term financial health.
Peer comparison
Dec 31, 2023