Southwest Airlines Co (WBO:LUV) 3-Year FCF Growth Rate : 41.60% (As of Mar. 2024)

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What is Southwest Airlines Co 3-Year FCF Growth Rate?

Southwest Airlines Co's Free Cash Flow per Share for the three months ended in Mar. 2024 was €-1.07.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 41.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Southwest Airlines Co was 291.50% per year. The lowest was -57.90% per year. And the median was 20.10% per year.

Competitive Comparison of Southwest Airlines Co's 3-Year FCF Growth Rate

For the Airlines subindustry, Southwest Airlines Co's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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 3-Year FCF Growth Rate Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's 3-Year FCF Growth Rate distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's 3-Year FCF Growth Rate falls into.

Southwest Airlines Co 3-Year FCF Growth Rate Calculation

This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.

Southwest Airlines Co (WBO:LUV) 3-Year FCF Growth Rate Explanation

Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.

Southwest Airlines Co 3-Year FCF Growth Rate Related Terms

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Southwest Airlines Co (WBO:LUV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Southwest Airlines Co (WBO:LUV) » Definitions » 3-Year FCF Growth Rate

Comparable Companies

Traded in Other Exchanges

LUV:USA LUV:Mexico SWN:Germany S1OU34:Brazil

Address

P.O. Box 36611, Dallas, TX, USA, 75235-1611

Website

https://www.southwest.com

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.