Southwest Airlines Company (LUV)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 224,000 | 243,000 | 521,000 | 884,000 | 1,017,000 | 1,597,000 | 1,935,000 | 1,371,000 | 1,721,000 | 357,000 | -1,787,000 | -3,508,000 | -3,817,000 | -1,983,000 | 247,000 | 2,342,000 | 2,957,000 | 3,112,000 | 3,091,000 | 3,095,000 |
| Total assets | US$ in thousands | 36,487,000 | 36,980,000 | 36,519,000 | 35,546,000 | 35,369,000 | 35,946,000 | 38,302,000 | 37,262,000 | 36,320,000 | 37,110,000 | 38,206,000 | 35,493,000 | 34,588,000 | 35,605,000 | 35,596,000 | 26,885,000 | 25,895,000 | 26,467,000 | 26,374,000 | 26,459,000 |
| Operating ROA | 0.61% | 0.66% | 1.43% | 2.49% | 2.88% | 4.44% | 5.05% | 3.68% | 4.74% | 0.96% | -4.68% | -9.88% | -11.04% | -5.57% | 0.69% | 8.71% | 11.42% | 11.76% | 11.72% | 11.70% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $224,000K ÷ $36,487,000K
= 0.61%
Southwest Airlines Co's operating return on assets (operating ROA) has exhibited fluctuations over the past eight quarters. The trend indicates a decline in operating ROA from 4.45% in Q3 2022 to 0.61% in Q4 2023. In Q1 2023, operating ROA saw a significant increase to 2.49%, followed by a further increase to 1.43% in Q2 2023. However, there was a decline in Q3 2023 to 0.66%.
Despite the variability, it is important to note that Southwest Airlines Co has maintained positive operating ROA throughout the analyzed period, with the exception of Q1 2022 when it recorded a negative operating ROA of -0.38%. This implies that the company has been generating operating profits from its assets, albeit at varying levels of efficiency.
Overall, Southwest Airlines Co's operating ROA trend suggests that the company's operational efficiency and profitability from its assets have fluctuated over the past eight quarters, with varying levels of performance observed across different periods.
Peer comparison
Dec 31, 2023