Southwest Airlines Company (LUV)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 233,000 | -17,000 | 131,000 | 539,000 | 632,000 | 633,000 | 749,000 | 899,000 | 728,000 | 1,090,000 | 1,337,000 | 803,000 | 1,325,000 | -83,000 | -2,225,000 | -3,966,000 | -4,256,000 | -2,258,000 | 103,000 | 2,310,000 |
| Revenue (ttm) | US$ in thousands | 27,401,000 | 27,239,000 | 26,858,000 | 26,481,000 | 25,856,000 | 25,202,000 | 24,805,000 | 24,431,000 | 23,395,000 | 22,240,000 | 20,744,000 | 18,041,000 | 15,380,000 | 12,435,000 | 9,655,000 | 6,763,000 | 9,048,000 | 12,764,000 | 16,610,000 | 21,511,000 |
| Pretax margin | 0.85% | -0.06% | 0.49% | 2.04% | 2.44% | 2.51% | 3.02% | 3.68% | 3.11% | 4.90% | 6.45% | 4.45% | 8.62% | -0.67% | -23.05% | -58.64% | -47.04% | -17.69% | 0.62% | 10.74% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $233,000K ÷ $27,401,000K
= 0.85%
The pretax margin of Southwest Airlines Company has shown fluctuations over the specified time period.
- Southwest Airlines reported a positive pretax margin of 10.74% as of March 31, 2020, indicating that the company earned 10.74 cents of pretax profit for every dollar of revenue generated.
- However, the pretax margin sharply declined to 0.62% by June 30, 2020, and became negative in the subsequent quarters, reaching a low of -58.64% by March 31, 2021. This negative trend suggests that expenses, such as operating costs and taxes, were surpassing the company's revenue during these periods.
- The company managed to improve its pretax margin gradually from negative percentages to reach 8.62% by December 31, 2021, signifying a return to profitability.
- Over the following quarters, Southwest Airlines maintained positive pretax margins in the range of 3-7%, indicating better cost management and revenue generation.
- As of December 31, 2024, the pretax margin stood at 0.85%, showing a slight decrease from the previous quarter.
Overall, Southwest Airlines' pretax margin reflects the company’s ability to handle costs and generate earnings before taxes, with fluctuations indicating the impact of various economic factors and internal strategies on its financial performance.
Peer comparison
Dec 31, 2024