Southwest Airlines Company (LUV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -32,000 | -361,000 | -282,000 | 115,000 | 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 |
| Total assets | US$ in thousands | 33,750,000 | 34,847,000 | 35,563,000 | 36,018,000 | 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 |
| Operating ROA | -0.09% | -1.04% | -0.79% | 0.32% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-32,000K ÷ $33,750,000K
= -0.09%
The operating return on assets (Operating ROA) for Southwest Airlines Company has shown fluctuations over the analyzed periods. From March 31, 2020, to December 31, 2020, the Operating ROA experienced a significant decline, moving from 8.71% to -11.04%. The negative trend continued into the first half of 2021, with ratios ranging between -9.88% and -4.68%.
However, starting in the third quarter of 2021, there was a positive upturn in the Operating ROA, showing a gradual improvement to 5.05% by June 30, 2022. This positive momentum was sustained for the rest of 2022, with ratios ranging from 2.88% to 4.44%.
In 2023 and 2024, the Operating ROA experienced a slight decline, ranging from 0.32% to -1.04%, indicating some challenges for the company in generating operating income relative to its total assets during these periods.
Overall, the Operating ROA of Southwest Airlines Company reflects a mix of positive and negative trends, demonstrating both periods of improvement and challenges in effectively utilizing its assets to generate operating income. It is important for the company to carefully manage its assets and operations to sustain and enhance its operating performance in the future.
Peer comparison
Dec 31, 2024