Southwest Airlines Company (LUV)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 99,000 | -49,000 | 77,000 | 393,000 | 465,000 | 497,000 | 581,000 | 658,000 | 539,000 | 827,000 | 996,000 | 584,000 | 978,000 | 2,000 | -1,601,000 | -2,864,000 | -3,074,000 | -1,652,000 | 164,000 | 1,820,000 |
| 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 |
| ROA | 0.29% | -0.14% | 0.22% | 1.09% | 1.27% | 1.34% | 1.59% | 1.85% | 1.52% | 2.30% | 2.60% | 1.57% | 2.69% | 0.01% | -4.19% | -8.07% | -8.89% | -4.64% | 0.46% | 6.77% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $99,000K ÷ $33,750,000K
= 0.29%
The return on assets (ROA) of Southwest Airlines Company has shown fluctuating trends over the past few years. The ROA was positive in the first quarter of 2020 at 6.77% but decreased significantly in the following quarters. By the end of 2020, the ROA had turned negative, indicating that the company's assets were not generating sufficient returns.
The negative trend continued into the first half of 2021, with ROA still in negative territory. However, there was a slight improvement in the third quarter of 2021, with the ROA turning positive again at 0.01%. This positive trend continued into the following quarters, with ROA values gradually increasing.
By the end of 2024, the ROA of Southwest Airlines Company had improved to 0.29%. While the ROA is still relatively low compared to the initial figure in 2020, the consistent upward trend from negative values indicates that the company's assets are becoming more efficient in generating returns over time. Further monitoring of the ROA will be essential to assess the company's ongoing financial performance.
Peer comparison
Dec 31, 2024