Southwest Airlines Company (LUV)

Return on assets (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
Net income (ttm)	US$ in thousands	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	2,301,000	2,441,000	2,397,000	2,389,000
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
ROA		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%	8.89%	9.22%	9.09%	9.03%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $465,000K ÷ $36,487,000K
= 1.27%

The return on assets (ROA) of Southwest Airlines Co has shown fluctuations in recent quarters. In Q1 2022, the ROA was 1.56%, which decreased to 1.52% in Q4 2022. However, the ROA experienced a significant increase in Q3 2022 to 2.30%, followed by a further increase to 2.60% in Q2 2022.

Subsequently, there was a decline in ROA in Q1 2023 to 1.85%, followed by a slight decrease to 1.59% in Q2 2023 and then to 1.34% in Q3 2023. In Q4 2023, the ROA improved slightly to 1.27%.

Overall, the trend in ROA for Southwest Airlines Co indicates some variability, with notable increases in mid-2022 followed by a more inconsistent performance in subsequent quarters. This suggests that the company's efficiency in generating profit from its assets has shown mixed results over the observed period.