Southwest Airls Co Financials
Southwest Airls Co (LUV) reported $28.1B in revenue for fiscal year 2025, up 2.1% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 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).
Cash is being pulled between reinvestment and shareholder payouts, leaving liquidity tighter even as profit stays positive.
From FY2024 to FY2025, operating cash flow rebounded from$462M to$1.8B , so the main pressure was not earnings alone. Yet capex and buybacks still absorbed more than that rebound could cover, leaving free cash flow at-$831M and cash at$3.2B ; that helps explain why the current ratio fell to 0.5x.
Between FY2023 and FY2025, operating margin improved only modestly despite higher revenue, staying below
Long-term debt fell from about
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Southwest Airls Co's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Southwest Airls Co has an operating margin of 1.5%, meaning the company retains $2 of operating profit per $100 of revenue. This results in a moderate score of 39/100, indicating healthy but not exceptional operating efficiency. This is up from 1.2% the prior year.
Southwest Airls Co's revenue grew a modest 2.1% year-over-year to $28.1B. This slow but positive growth earns a score of 45/100.
Southwest Airls Co has a moderate D/E ratio of 0.57. This balance of debt and equity financing earns a leverage score of 54/100.
Southwest Airls Co's current ratio of 0.52 is below the typical benchmark, resulting in a score of 5/100. This tight liquidity could limit financial flexibility if cash inflows slow.
While Southwest Airls Co generated $1.8B in operating cash flow, capex of $2.7B consumed most of it, leaving -$831.0M in free cash flow. This results in a low score of 22/100, reflecting heavy capital investment rather than weak cash generation.
Southwest Airls Co's ROE of 5.5% shows moderate profitability relative to equity, earning a score of 42/100. This is up from 4.5% the prior year.
Southwest Airls Co scores 2.15, placing it in the grey zone between 1.81 and 2.99. This signals moderate financial risk that warrants monitoring.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Southwest Airls Co passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 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 ($1.8B OCF vs $441.0M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Southwest Airls Co earns $2.56 in operating income for every $1 of interest expense ($428.0M vs $167.0M). This adequate coverage means the company can meet its interest obligations, but has limited cushion if earnings fall.
Key Financial Metrics
Earnings & Revenue
Southwest Airls Co generated $28.1B in revenue in fiscal year 2025. This represents an increase of 2.1% from the prior year.
Southwest Airls Co's EBITDA was $2.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 0.5% from the prior year.
Southwest Airls Co reported $441.0M in net income in fiscal year 2025. This represents a decrease of 5.2% 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.
Cash & Balance Sheet
Southwest Airls Co recorded an outflow of $831.0M in free cash flow in fiscal year 2025, representing a cash shortfall after capex. This represents an increase of 47.8% from the prior year.
Southwest Airls Co held $3.2B in cash against $4.6B in long-term debt as of fiscal year 2025.
Southwest Airls Co paid $0.72 per share in dividends in fiscal year 2025. That is unchanged from the prior year.
Margins & Returns
Southwest Airls Co's operating margin was 1.5% in fiscal year 2025, reflecting core business profitability. This is up 0.4 percentage points from the prior year.
Southwest Airls Co's net profit margin was 1.6% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.1 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.
Not reported for fiscal year 2025.
Capital Allocation
Southwest Airls Co spent $2.5B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 920.0% from the prior year.
Southwest Airls Co invested $2.7B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 30.1% from the prior year.
Not reported for fiscal year 2025.
LUV Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $30.1B | $28.1B+2.1% | $27.5B+5.3% | $26.1B+9.6% | $23.8B+50.8% | $15.8B+74.5% | $9.0B-59.7% | $22.4B+2.1% | $22.0B+3.8% | $21.2B+3.7% | $20.4B+3.1% | $19.8B+6.5% | $18.6B+5.1% | $17.7B+3.6% | $17.1B+9.1% | $15.7B |
| SG&A Expenses | $13.4B | $13.0B+5.9% | $12.2B+9.8% | $11.2B+18.9% | $9.4B+21.1% | $7.7B+13.7% | $6.8B-17.9% | $8.3B+8.4% | $7.6B+4.7% | $7.3B+7.6% | $6.8B+6.3% | $6.4B+17.5% | $5.4B+7.9% | $5.0B+6.0% | $4.7B+8.6% | $4.4B |
| Operating Income | $1.0B | $428.0M+33.3% | $321.0M+43.3% | $224.0M-78.0% | $1.0B-40.9% | $1.7B+145.1% | -$3.8B-229.0% | $3.0B-7.8% | $3.2B-5.9% | $3.4B-3.3% | $3.5B-14.4% | $4.1B+85.0% | $2.2B+74.1% | $1.3B+105.1% | $623.0M-10.1% | $693.0M |
| Interest Expense | $200.0M | $167.0M-32.9% | $249.0M-3.9% | $259.0M-23.8% | $340.0M | N/A | N/A | $118.0M-9.9% | $131.0M+14.9% | $114.0M-6.6% | $122.0M+0.8% | $121.0M-6.9% | $130.0M-0.8% | $131.0M-10.9% | $147.0M-24.2% | $194.0M |
| Income Tax | $229.0M | $122.0M-8.3% | $133.0M-20.8% | $168.0M-11.1% | $189.0M-45.7% | $348.0M+129.4% | -$1.2B-279.9% | $657.0M-6.0% | $699.0M+859.8% | -$92.0M-107.3% | $1.3B-2.4% | $1.3B+90.9% | $680.0M+49.5% | $455.0M+72.3% | $264.0M+82.1% | $145.0M |
| Net Income | $837.0M | $441.0M-5.2% | $465.0M0.0% | $465.0M-13.7% | $539.0M-44.8% | $977.0M+131.8% | -$3.1B-233.7% | $2.3B-6.7% | $2.5B-26.6% | $3.4B+53.8% | $2.2B+0.1% | $2.2B+92.0% | $1.1B+50.7% | $754.0M+79.1% | $421.0M+136.5% | $178.0M |
| EPS (Diluted) | — | $0.79+3.9% | $0.760.0% | $0.76-12.6% | $0.87-46.0% | $1.61+129.6% | -$5.44-227.4% | $4.27-0.5% | $4.29-23.0% | $5.57+61.4% | $3.45+5.5% | $3.27+99.4% | $1.64+56.2% | $1.05+87.5% | $0.56+143.5% | $0.23 |
Not reported in any period shown, so not listed: Cost of Revenue, Gross Profit, R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
LUV Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $29.1B-13.9% | $33.8B-7.5% | $36.5B+3.2% | $35.4B-2.6% | $36.3B+5.0% | $34.6B+33.6% | $25.9B-1.3% | $26.2B+4.5% | $25.1B+7.8% | $23.3B+9.3% | $21.3B+8.1% | $19.7B+2.0% | $19.3B+4.0% | $18.6B+2.9% | $18.1B |
| Current Assets | $5.6B-49.9% | $11.3B-19.2% | $14.0B-5.8% | $14.8B-17.9% | $18.0B+18.9% | $15.2B+154.0% | $6.0B+18.8% | $5.0B+4.4% | $4.8B+7.0% | $4.5B+11.8% | $4.0B+2.5% | $3.9B-11.9% | $4.5B+5.4% | $4.2B-2.7% | $4.3B |
| Cash & Equivalents | $3.2B-57.0% | $7.5B-19.2% | $9.3B-2.1% | $9.5B-23.9% | $12.5B+12.8% | $11.1B+334.2% | $2.5B+37.4% | $1.9B+24.0% | $1.5B-11.0% | $1.7B+6.1% | $1.6B+23.5% | $1.3B-5.4% | $1.4B+21.7% | $1.1B+34.3% | $829.0M |
| Accounts Receivable | $98.0M+108.5% | $47.0M-54.8% | $104.0M-11.1% | $117.0M+101.7% | $58.0M+26.1% | $46.0M | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $970.0M0.0% | $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-9.9% | $23.4B-9.9% | $26.0B+5.2% | $24.7B-4.7% | $25.9B+0.8% | $25.7B+60.1% | $16.1B-2.0% | $16.4B+6.0% | $15.5B-0.2% | $15.5B+6.5% | $14.6B+12.4% | $12.9B+7.8% | $12.0B+3.5% | $11.6B+3.7% | $11.2B |
| Current Liabilities | $10.9B-11.0% | $12.3B+0.2% | $12.3B+18.1% | $10.4B+13.2% | $9.2B+22.1% | $7.5B-16.2% | $9.0B+13.2% | $7.9B+15.2% | $6.9B+0.3% | $6.8B-7.6% | $7.4B+25.0% | $5.9B+4.4% | $5.7B+22.1% | $4.7B+2.6% | $4.5B |
| Long-Term Debt | $4.6B-9.7% | $5.1B-36.5% | $8.0B-0.8% | $8.0B-21.7% | $10.3B+1.6% | $10.1B+447.7% | $1.8B-33.4% | $2.8B-16.5% | $3.3B+17.7% | $2.8B+11.0% | $2.5B+4.4% | $2.4B+11.1% | $2.2B-24.0% | $2.9B-7.2% | $3.1B |
| Total Equity | $8.0B-22.9% | $10.3B-1.6% | $10.5B-1.6% | $10.7B+2.6% | $10.4B+17.3% | $8.9B-9.7% | $9.8B-0.2% | $9.9B+2.2% | $9.6B+23.9% | $7.8B+15.1% | $6.8B-0.2% | $6.8B-7.6% | $7.3B+4.9% | $7.0B+1.7% | $6.9B |
| Retained Earnings | $16.4B+0.3% | $16.3B+0.2% | $16.3B+0.2% | $16.3B+3.1% | $15.8B+6.7% | $14.8B-17.7% | $17.9B+12.4% | $16.0B+15.4% | $13.8B+21.1% | $11.4B+21.4% | $9.4B+26.9% | $7.4B+15.3% | $6.4B+11.5% | $5.8B+6.9% | $5.4B |
Not reported in any period shown, so not listed: Inventory.
LUV Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.5B | $1.8B+298.7% | $462.0M-85.4% | $3.2B-16.5% | $3.8B+63.2% | $2.3B+306.0% | -$1.1B-128.3% | $4.0B-18.5% | $4.9B+24.5% | $3.9B-8.5% | $4.3B+32.6% | $3.2B+11.6% | $2.9B+17.2% | $2.5B+20.0% | $2.1B+52.2% | $1.4B |
| Capital Expenditures | $3.0B | $2.7B+30.1% | $2.1B-41.6% | $3.5B-10.3% | $3.9B+677.0% | $505.0M-1.9% | $515.0M-49.9% | $1.0B-46.6% | $1.9B-9.5% | $2.1B+4.2% | $2.0B-0.1% | $2.0B+16.8% | $1.7B+20.8% | $1.4B+7.3% | $1.3B+39.3% | $968.0M |
| Free Cash Flow | -$455.0M | -$831.0M+47.8% | -$1.6B-347.2% | -$356.0M-165.7% | -$134.0M-107.4% | $1.8B+210.7% | -$1.6B-155.5% | $3.0B-0.4% | $3.0B+64.5% | $1.8B-19.9% | $2.3B+88.4% | $1.2B+3.7% | $1.2B+12.0% | $1.0B+43.9% | $716.0M+84.5% | $388.0M |
| Investing Cash Flow | -$2.2B | -$1.4B-447.5% | -$261.0M+91.1% | -$2.9B+21.7% | -$3.7B-196.4% | -$1.3B-7800.0% | -$16.0M+94.7% | -$303.0M+85.1% | -$2.0B+15.4% | -$2.4B-6.0% | -$2.3B-18.8% | -$1.9B-10.8% | -$1.7B-24.8% | -$1.4B-66.1% | -$833.0M+18.5% | -$1.0B |
| Financing Cash Flow | -$39.0M | -$4.7B-136.9% | -$2.0B-354.1% | -$436.0M+85.6% | -$3.0B-944.6% | $359.0M-96.3% | $9.7B+423.0% | -$3.0B-19.8% | -$2.5B-46.3% | -$1.7B+11.3% | -$1.9B-87.9% | -$1.0B+17.9% | -$1.2B-46.7% | -$851.0M+10.1% | -$947.0M-23.6% | -$766.0M |
| Dividends Paid | $370.0M | $399.0M-7.2% | $430.0M+0.5% | $428.0M | $0 | $0-100.0% | $188.0M-49.5% | $372.0M+12.0% | $332.0M+21.2% | $274.0M+23.4% | $222.0M+23.3% | $180.0M+29.5% | $139.0M+95.8% | $71.0M+222.7% | $22.0M+57.1% | $14.0M |
| Share Buybacks | $1.6B | $2.5B+920.0% | $250.0M | $0 | $0 | $0-100.0% | $451.0M-77.5% | $2.0B0.0% | $2.0B+25.0% | $1.6B-8.6% | $1.8B+48.3% | $1.2B+23.6% | $955.0M+76.9% | $540.0M+35.0% | $400.0M+77.8% | $225.0M |
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
LUV Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Margin | 1.5%+0.4pp | 1.2%+0.3pp | 0.9%-3.4pp | 4.3%-6.6pp | 10.9%+53.1pp | -42.2%-55.4pp | 13.2%-1.4pp | 14.6%-1.5pp | 16.1%-1.2pp | 17.2%-3.5pp | 20.8%+8.8pp | 12.0%+4.7pp | 7.2%+3.6pp | 3.6%-0.8pp | 4.4% |
| Net Margin | 1.6%-0.1pp | 1.7%-0.1pp | 1.8%-0.5pp | 2.3%-3.9pp | 6.2%+40.2pp | -34.0%-44.2pp | 10.3%-1.0pp | 11.2%-4.6pp | 15.9%+5.2pp | 10.7%-0.3pp | 11.0%+4.9pp | 6.1%+1.9pp | 4.3%+1.8pp | 2.5%+1.3pp | 1.1% |
| Return on Equity | 5.5%+1.0pp | 4.5%+0.1pp | 4.4%-0.6pp | 5.0%-4.3pp | 9.4%+44.0pp | -34.6%-58.0pp | 23.4%-1.6pp | 25.0%-9.8pp | 34.8%+6.8pp | 28.0%-4.2pp | 32.3%+15.5pp | 16.8%+6.5pp | 10.3%+4.3pp | 6.0%+3.4pp | 2.6% |
| Return on Assets | 1.5%+0.1pp | 1.4%+0.1pp | 1.3%-0.3pp | 1.5%-1.2pp | 2.7%+11.6pp | -8.9%-17.8pp | 8.9%-0.5pp | 9.4%-4.0pp | 13.4%+4.0pp | 9.4%-0.9pp | 10.2%+4.5pp | 5.8%+1.9pp | 3.9%+1.6pp | 2.3%+1.3pp | 1.0% |
| Current Ratio | 0.52-0.4x | 0.92-0.2x | 1.14-0.3x | 1.43-0.5x | 1.97-0.1x | 2.02+1.4x | 0.670.0x | 0.64-0.1x | 0.700.0x | 0.66+0.1x | 0.54-0.1x | 0.66-0.1x | 0.79-0.1x | 0.910.0x | 0.96 |
| Debt-to-Equity | 0.57+0.1x | 0.49-0.3x | 0.760.0x | 0.75-0.2x | 0.99-0.2x | 1.14+1.0x | 0.19-0.1x | 0.28-0.1x | 0.340.0x | 0.360.0x | 0.380.0x | 0.36+0.1x | 0.30-0.1x | 0.410.0x | 0.45 |
| FCF Margin | -3.0%+2.8pp | -5.8%-4.4pp | -1.4%-0.8pp | -0.6%-12.1pp | 11.5%+29.7pp | -18.1%-31.4pp | 13.2%-0.3pp | 13.5%+5.0pp | 8.5%-2.5pp | 11.0%+5.0pp | 6.0%-0.2pp | 6.2%+0.4pp | 5.8%+1.6pp | 4.2%+1.7pp | 2.5% |
Not reported in any period shown, so not listed: Gross Margin.
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
Where Southwest Airls Co Ranks
Frequently Asked Questions
What is Southwest Airls Co's annual revenue?
Southwest Airls Co (LUV) reported $28.1B in total revenue for fiscal year 2025. This represents a 2.1% 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 grew by 2.1% year-over-year, from $27.5B to $28.1B in fiscal year 2025.
Is Southwest Airls Co profitable?
Yes, Southwest Airls Co (LUV) reported a net income of $441.0M in fiscal year 2025, with a net profit margin of 1.6%.
What is Southwest Airls Co's EBITDA?
Southwest Airls Co (LUV) had EBITDA of $2.0B 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 $3.2B in cash and equivalents against $4.6B in long-term debt.
What is Southwest Airls Co's operating margin?
Southwest Airls Co (LUV) had an operating margin of 1.5% 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 1.6% 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) recorded an outflow of $831.0M in free cash flow during fiscal year 2025. This represents a 47.8% 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 $1.8B 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 $29.1B 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 $2.7B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
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 0.57 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 2.15, placing it in the Grey Zone (moderate 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 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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 2.56x, meaning it can adequately 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 35 out of 100 on our Financial Health Score, indicating weak standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.