Southwest Airls Co Financials
This page shows Southwest Airls Co (LUV) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Southwest Airls Co has an operating margin of 1.7%, meaning the company retains $2 of operating profit per $100 of revenue. This below-average margin results in a low score of 8/100, suggesting thin profitability after operating expenses. This is up from 1.2% the prior year.
Southwest Airls Co's revenue declined 100% year-over-year, from $27.5B to $26K. This contraction results in a growth score of 0/100.
Southwest Airls Co carries a low D/E ratio of 0.62, meaning only $0.62 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 88/100, indicating a strong balance sheet with room for future borrowing.
Southwest Airls Co's current ratio of 0.52 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 1/100, which could limit financial flexibility.
While Southwest Airls Co generated $2K in operating cash flow, capex of $3K consumed most of it, leaving -$831 in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Southwest Airls Co generates a 5.5% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 22/100. This is up from 4.5% the prior year.
Southwest Airls Co scores 714743.31, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($25.1B) relative to total liabilities ($21K). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Southwest Airls Co passes 7 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), 2 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Southwest Airls Co generates $4.18 in operating cash flow ($2K OCF vs $441 net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Southwest Airls Co earns $42.8 in operating income for every $1 of interest expense ($428 vs $10). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Southwest Airls Co generated $26K in revenue in fiscal year 2025. This represents a decrease of 100.0% from the prior year.
Southwest Airls Co's EBITDA was $2K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 100.0% from the prior year.
Southwest Airls Co generated -$831 in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 100.0% from the prior year.
Southwest Airls Co reported $441 in net income in fiscal year 2025. This represents a decrease of 100.0% from the prior year.
Southwest Airls Co earned $0.79 per diluted share (EPS) in fiscal year 2025. This represents an increase of 3.9% from the prior year.
Southwest Airls Co held $3K in cash against $5K in long-term debt as of fiscal year 2025.
Southwest Airls Co paid $0.72 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Southwest Airls Co had 491M shares outstanding in fiscal year 2025. This represents a decrease of 17.1% from the prior year.
Southwest Airls Co's operating margin was 1.7% in fiscal year 2025, reflecting core business profitability. This is up 0.5 percentage points from the prior year.
Southwest Airls Co's net profit margin was 1.7% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.0 percentage points from the prior year.
Southwest Airls Co's ROE was 5.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.0 percentage points from the prior year.
Southwest Airls Co spent $3K on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 100.0% from the prior year.
Southwest Airls Co invested $3K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 100.0% from the prior year.
LUV Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.4B+7.1% | $6.9B-4.1% | $7.2B+12.7% | $6.4B-7.2% | $6.9B+0.9% | $6.9B-6.6% | $7.4B+16.2% | $6.3B |
| Cost of Revenue | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Gross Profit | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | $391.0M+1017.1% | $35.0M-84.4% | $225.0M+200.9% | -$223.0M-180.2% | $278.0M+631.6% | $38.0M-90.5% | $398.0M+201.3% | -$393.0M |
| Interest Expense | $47.0M+34.3% | $35.0M-10.3% | $39.0M-15.2% | $46.0M-20.7% | $58.0M-7.9% | $63.0M0.0% | $63.0M-3.1% | $65.0M |
| Income Tax | $84.0M+500.0% | $14.0M-79.1% | $67.0M+255.8% | -$43.0M-164.2% | $67.0M+204.5% | $22.0M-80.2% | $111.0M+265.7% | -$67.0M |
| Net Income | $323.0M+498.1% | $54.0M-74.6% | $213.0M+243.0% | -$149.0M-156.9% | $262.0M+291.0% | $67.0M-81.7% | $367.0M+258.9% | -$231.0M |
| EPS (Diluted) | $0.56+460.0% | $0.10-74.4% | $0.39+250.0% | $-0.26-156.5% | $0.46+318.2% | $0.11-81.0% | $0.58+248.7% | $-0.39 |
LUV Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $29.1B+2.6% | $28.3B-1.4% | $28.7B-13.5% | $33.2B-1.6% | $33.8B-3.1% | $34.8B-2.0% | $35.6B-1.3% | $36.0B |
| Current Assets | $5.6B+4.6% | $5.4B-11.4% | $6.1B-43.2% | $10.7B-4.8% | $11.3B-5.5% | $11.9B-6.4% | $12.8B-4.0% | $13.3B |
| Cash & Equivalents | $3.2B+11.3% | $2.9B-16.5% | $3.5B-57.3% | $8.1B+8.3% | $7.5B-11.7% | $8.5B+4.4% | $8.1B-2.7% | $8.4B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $98.0M+88.5% | $52.0M-13.3% | $60.0M+27.7% | $47.0M0.0% | $47.0M-6.0% | $50.0M-25.4% | $67.0M+15.5% | $58.0M |
| Goodwill | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M |
| Total Liabilities | $21.1B+2.6% | $20.5B-0.8% | $20.7B-13.1% | $23.8B+1.9% | $23.4B-4.2% | $24.4B-2.6% | $25.1B-2.8% | $25.8B |
| Current Liabilities | $10.9B-0.7% | $11.0B+0.9% | $10.9B-21.6% | $13.9B+13.2% | $12.3B-9.0% | $13.5B-4.4% | $14.1B+15.4% | $12.2B |
| Long-Term Debt | $4.9B+20.8% | $4.1B0.0% | $4.1B-0.1% | $4.1B-39.0% | $6.7B+32.0% | $5.1B+0.2% | $5.1B-36.5% | $8.0B |
| Total Equity | $8.0B+2.6% | $7.8B-2.8% | $8.0B-14.6% | $9.4B-9.5% | $10.3B-0.6% | $10.4B-0.5% | $10.5B+2.6% | $10.2B |
| Retained Earnings | $16.4B+1.4% | $16.2B-0.3% | $16.2B+0.7% | $16.1B-1.5% | $16.3B+1.0% | $16.2B-0.2% | $16.2B+1.6% | $16.0B |
LUV Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $295.0M+2.8% | $287.0M-28.4% | $401.0M-53.4% | $860.0M+80.7% | $476.0M+321.2% | $113.0M+591.3% | -$23.0M+77.9% | -$104.0M |
| Capital Expenditures | $859.0M+26.7% | $678.0M+6.8% | $635.0M+26.7% | $501.0M+8.9% | $460.0M-11.0% | $517.0M+4.7% | $494.0M-15.3% | $583.0M |
| Free Cash Flow | -$564.0M-44.2% | -$391.0M-67.1% | -$234.0M-165.2% | $359.0M+2143.8% | $16.0M+104.0% | -$404.0M+21.9% | -$517.0M+24.7% | -$687.0M |
| Investing Cash Flow | -$742.0M-73.4% | -$428.0M+51.5% | -$882.0M-241.6% | $623.0M+753.4% | $73.0M-84.1% | $458.0M+322.3% | -$206.0M+64.8% | -$585.0M |
| Financing Cash Flow | $776.0M+279.6% | -$432.0M+89.7% | -$4.2B-386.9% | -$858.0M+44.4% | -$1.5B-634.8% | -$210.0M-5350.0% | $4.0M+101.7% | -$232.0M |
| Dividends Paid | $0-100.0% | $189.0M+83.5% | $103.0M-3.7% | $107.0M+10800.0% | -$1.0M-100.5% | $216.0M | $0-100.0% | $215.0M |
| Share Buybacks | $50.0M-80.0% | $250.0M-83.3% | $1.5B+100.0% | $750.0M+200.0% | $250.0M | $0 | $0 | $0 |
LUV Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Margin | 5.3%+4.8pp | 0.5%-2.6pp | 3.1%+6.6pp | -3.5%-7.5pp | 4.0%+3.5pp | 0.5%-4.9pp | 5.4%+11.6pp | -6.2% |
| Net Margin | 4.3%+3.6pp | 0.8%-2.2pp | 2.9%+5.3pp | -2.3%-6.1pp | 3.8%+2.8pp | 1.0%-4.0pp | 5.0%+8.6pp | -3.6% |
| Return on Equity | 4.0%+3.4pp | 0.7%-2.0pp | 2.7% | N/A | 2.5%+1.9pp | 0.6%-2.9pp | 3.5% | N/A |
| Return on Assets | 1.1%+0.9pp | 0.2%-0.6pp | 0.7%+1.2pp | -0.4%-1.2pp | 0.8%+0.6pp | 0.2%-0.8pp | 1.0%+1.7pp | -0.6% |
| Current Ratio | 0.52+0.0 | 0.49-0.1 | 0.56-0.2 | 0.77-0.1 | 0.92+0.0 | 0.88-0.0 | 0.90-0.2 | 1.09 |
| Debt-to-Equity | 0.62+0.1 | 0.52+0.0 | 0.51+0.1 | 0.44-0.2 | 0.65+0.2 | 0.490.0 | 0.48-0.3 | 0.78 |
| FCF Margin | -7.6%-2.0pp | -5.6%-2.4pp | -3.2%-8.8pp | 5.6%+5.4pp | 0.2%+6.1pp | -5.9%+1.2pp | -7.0%+3.8pp | -10.8% |
Note: The current ratio is below 1.0 (0.52), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
Similar Companies
Frequently Asked Questions
What is Southwest Airls Co's annual revenue?
Southwest Airls Co (LUV) reported $26K in total revenue for fiscal year 2025. This represents a -100.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Southwest Airls Co's revenue growing?
Southwest Airls Co (LUV) revenue declined by 100% year-over-year, from $27.5B to $26K in fiscal year 2025.
Is Southwest Airls Co profitable?
Yes, Southwest Airls Co (LUV) reported a net income of $441 in fiscal year 2025, with a net profit margin of 1.7%.
What is Southwest Airls Co's earnings per share (EPS)?
Southwest Airls Co (LUV) reported diluted earnings per share of $0.79 for fiscal year 2025. This represents a 3.9% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Southwest Airls Co's EBITDA?
Southwest Airls Co (LUV) had EBITDA of $2K in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Southwest Airls Co have?
As of fiscal year 2025, Southwest Airls Co (LUV) had $3K in cash and equivalents against $5K in long-term debt.
What is Southwest Airls Co's operating margin?
Southwest Airls Co (LUV) had an operating margin of 1.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Southwest Airls Co's net profit margin?
Southwest Airls Co (LUV) had a net profit margin of 1.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Southwest Airls Co pay dividends?
Yes, Southwest Airls Co (LUV) paid $0.72 per share in dividends during fiscal year 2025.
What is Southwest Airls Co's return on equity (ROE)?
Southwest Airls Co (LUV) has a return on equity of 5.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Southwest Airls Co's free cash flow?
Southwest Airls Co (LUV) generated -$831 in free cash flow during fiscal year 2025. This represents a 100.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Southwest Airls Co's operating cash flow?
Southwest Airls Co (LUV) generated $2K in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Southwest Airls Co's total assets?
Southwest Airls Co (LUV) had $29K in total assets as of fiscal year 2025, including both current and long-term assets.
What are Southwest Airls Co's capital expenditures?
Southwest Airls Co (LUV) invested $3K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
Does Southwest Airls Co buy back shares?
Yes, Southwest Airls Co (LUV) spent $3K on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Southwest Airls Co have outstanding?
Southwest Airls Co (LUV) had 491M shares outstanding as of fiscal year 2025.
What is Southwest Airls Co's current ratio?
Southwest Airls Co (LUV) had a current ratio of 0.52 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Southwest Airls Co's debt-to-equity ratio?
Southwest Airls Co (LUV) had a debt-to-equity ratio of 0.62 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Southwest Airls Co's return on assets (ROA)?
Southwest Airls Co (LUV) had a return on assets of 1.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Southwest Airls Co's Altman Z-Score?
Southwest Airls Co (LUV) has an Altman Z-Score of 714743.31, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Southwest Airls Co's Piotroski F-Score?
Southwest Airls Co (LUV) has a Piotroski F-Score of 7 out of 9, indicating strong financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Southwest Airls Co's earnings high quality?
Southwest Airls Co (LUV) has an earnings quality ratio of 4.18x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Southwest Airls Co cover its interest payments?
Southwest Airls Co (LUV) has an interest coverage ratio of 42.8x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Southwest Airls Co?
Southwest Airls Co (LUV) scores 20 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.