Southwest Airlines Company (LUV)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 36,487,000 | 35,369,000 | 36,320,000 | 34,588,000 | 25,895,000 |
| ROA | 1.27% | 1.52% | 2.69% | -8.89% | 8.88% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $465,000K ÷ $36,487,000K
= 1.27%
Southwest Airlines Co's return on assets (ROA) has fluctuated over the past five years. In 2023, the ROA decreased to 1.27% from 1.52% in 2022 and 2.69% in 2021, indicating a declining trend in the company's ability to generate profits from its assets. The negative ROA of -8.89% in 2020 suggests that the company experienced significant financial challenges that year. However, the strong positive ROA of 8.88% in 2019 reflects a period of robust performance in terms of asset utilization and profitability. Overall, Southwest Airlines Co's ROA performance has been variable in recent years, highlighting the importance of closely monitoring the company's asset efficiency and profitability metrics.
Peer comparison
Dec 31, 2023