Southwest Airlines Co (FRA:SWN) Debt-to-Equity : 0.88 (As of Dec. 2023)

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What is Southwest Airlines Co Debt-to-Equity?

Southwest Airlines Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €217 Mil. Southwest Airlines Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €8,219 Mil. Southwest Airlines Co's Total Stockholders Equity for the quarter that ended in Dec. 2023 was €9,642 Mil. Southwest Airlines Co's debt to equity for the quarter that ended in Dec. 2023 was 0.87.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Southwest Airlines Co's Debt-to-Equity or its related term are showing as below:

FRA:SWN' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.34 Med: 0.42 Max: 1.37
Current: 0.88

During the past 13 years, the highest Debt-to-Equity Ratio of Southwest Airlines Co was 1.37. The lowest was 0.34. And the median was 0.42.

FRA:SWN's Debt-to-Equity is ranked worse than
64.63% of 885 companies
in the Transportation industry
Industry Median: 0.55 vs FRA:SWN: 0.88

Southwest Airlines Co Debt-to-Equity Historical Data

The historical data trend for Southwest Airlines Co's Debt-to-Equity 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 Debt-to-Equity Chart

Southwest Airlines Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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0.41

1.37

1.18

0.88

Southwest Airlines Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.88	0.91	0.87	0.84	0.88

Competitive Comparison of Southwest Airlines Co's Debt-to-Equity

For the Airlines subindustry, Southwest Airlines Co's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Debt-to-Equity falls into.

Southwest Airlines Co Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Southwest Airlines Co's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(217.329	+	8219.071)	/	9642.255
	=	0.87

Southwest Airlines Co's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(217.329	+	8219.071)	/	9642.255
	=	0.87

Southwest Airlines Co (FRA:SWN) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Southwest Airlines Co Debt-to-Equity Related Terms

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Southwest Airlines Co (FRA:SWN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Southwest Airlines Co (FRA:SWN) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

LUV:USA LUV:Mexico S1OU34:Brazil LUV:Austria

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.