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Southwest Airlines Co (Southwest Airlines Co) Asset Turnover : 0.18 (As of Mar. 2024)


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What is Southwest Airlines Co Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Southwest Airlines Co's Revenue for the three months ended in Mar. 2024 was $6,329 Mil. Southwest Airlines Co's Total Assets for the quarter that ended in Mar. 2024 was $36,253 Mil. Therefore, Southwest Airlines Co's Asset Turnover for the quarter that ended in Mar. 2024 was 0.18.

Asset Turnover is linked to ROE % through Du Pont Formula. Southwest Airlines Co's annualized ROE % for the quarter that ended in Mar. 2024 was -8.92%. It is also linked to ROA % through Du Pont Formula. Southwest Airlines Co's annualized ROA % for the quarter that ended in Mar. 2024 was -2.55%.


Southwest Airlines Co Asset Turnover Historical Data

The historical data trend for Southwest Airlines Co's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Southwest Airlines Co Asset Turnover Chart

Southwest Airlines Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.30 0.45 0.66 0.73

Southwest Airlines Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.16 0.20 0.18 0.19 0.18

Competitive Comparison of Southwest Airlines Co's Asset Turnover

For the Airlines subindustry, Southwest Airlines Co's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Southwest Airlines Co's Asset Turnover Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Asset Turnover falls into.



Southwest Airlines Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Southwest Airlines Co's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=26091/( (35369+36487)/ 2 )
=26091/35928
=0.73

Southwest Airlines Co's Asset Turnover for the quarter that ended in Mar. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=6329/( (36487+36018)/ 2 )
=6329/36252.5
=0.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Southwest Airlines Co  (NYSE:LUV) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Southwest Airlines Co's annulized ROE % for the quarter that ended in Mar. 2024 is

ROE %**(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-924/10355.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-924 / 25316)*(25316 / 36252.5)*(36252.5/ 10355.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3.65 %*0.6983*3.5008
=ROA %*Equity Multiplier
=-2.55 %*3.5008
=-8.92 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Southwest Airlines Co's annulized ROA % for the quarter that ended in Mar. 2024 is

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=-924/36252.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-924 / 25316)*(25316 / 36252.5)
=Net Margin %*Asset Turnover
=-3.65 %*0.6983
=-2.55 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Southwest Airlines Co Asset Turnover Related Terms

Thank you for viewing the detailed overview of Southwest Airlines Co's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Southwest Airlines Co (Southwest Airlines Co) Business Description

Address
P.O. Box 36611, Dallas, TX, USA, 75235-1611
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates over 700 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights, using a point-to-point network. Southwest operates a low-cost carrier business model.
Executives
Roy Blunt director 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Elaine Mendoza director 2223 POSTOAK COURT, SAN ANTONIO TX 78248
Eduardo F Conrado director 1303 E. ALGONQUIN ROAD, SCHAUMBURG IL 60196
Ryan C. Green officer: EVP, Chief Commercial Officer 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Jill A. Soltau director 123 SOUTH FRONT STREET, MEMPHIS TN 38103
John T Montford director C/O SOUTHWEST AIRLINES CO, 2702 LOVE FIELD DR PO BOX 36611, DALLAS TX 75235-1611
Christopher P. Reynolds director 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
David P Hess director 390 PARK AVENUE, NEW YORK NY 10022
Thomas W. Gilligan director C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Linda B. Rutherford officer: EVP People and Communications 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Robert E Jordan officer: EVP - Strategy and Planning C/O SOUTHWEST AIRLINES CO., 2702 LOVE FIELD DRIVE, DALLAS TX 75235
Gregory D Wells officer: EVP, Daily Operations 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Alan Kasher officer: EVP Daily Operations 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Mark R Shaw officer: SVP,Gen Counsel,Corp.Secretary 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Tammy Romo officer: SR VP Finance & CFO C/O SOUTHWEST AIRINES CO., 2702 LOVE FIELD DR., DALLAS TX 75235

Southwest Airlines Co (Southwest Airlines Co) Headlines

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