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Southwest Airlines CoFRA:SWN -0.74%82 Debt-to-Equity is 0.93 as of Mar. 2026, which is 15% above its 10-year median of 0.81. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €35.14 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 909 Transportation companies, Southwest Airlines Co ranks worse than 69.2% on this metric.
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: 0.81 Max: 1.41
Current: 0.93
During the past 13 years, the highest Debt-to-Equity Ratio of Southwest Airlines Co was 1.41. The lowest was 0.34. And the median was 0.81.
FRA:SWN's Debt-to-Equity is ranked worse than 69.2% of 909
companies
in the Transportation industry
Industry Median: 0.53
vs FRA:SWN: 0.93
Southwest Airlines Co (FRA:SWN) Debt-to-Equity Explanation
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
Southwest Airlines Co Debt-to-Equity Historical Data
* Premium members only.
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.
FRA:SWN vs AAL, UAL, CPA: Debt-to-Equity Comparison
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 Debt-to-Equity vs 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.
* 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.
Southwest Airlines Co (FRA:SWN) has a Debt-to-Equity of 0.93 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Southwest Airlines Co and its competitors. This is 15% above median its historical median of 0.81. Over the past decade, Southwest Airlines Co's Debt-to-Equity has ranged from 0.34 to 1.41. According to the industry distribution chart, Southwest Airlines Co ranks #629 out of 909 companies in the Transportation industry, placing it in the top 69.2%.
Is Southwest Airlines Co's Debt-to-Equity too high?
Southwest Airlines Co's current Debt-to-Equity of 0.93 is 15% above median its 10-year median of 0.81. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 1.41. The Transportation industry median Debt-to-Equity is 0.53. Southwest Airlines Co's value of 0.93 is 75.5% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #629 out of 909 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Debt-to-Equity compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #629 out of 909 companies for Debt-to-Equity. This places Southwest Airlines Co in the lower half of its industry. The industry median Debt-to-Equity is 0.53. Southwest Airlines Co's value of 0.93 is 75.5% above this benchmark. Historically, Southwest Airlines Co's own Debt-to-Equity has ranged from 0.34 to 1.41 over the past decade. While the company's 10-year median is 0.81 vs. the industry median of 0.53, Southwest Airlines Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Transportation company?
The median Debt-to-Equity among Transportation companies is 0.53, based on 909 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Debt-to-Equity of 0.93 is 75.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Debt-to-Equity is 0.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Debt-to-Equity is 0.93, which is 15% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (FRA:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €35.14, compared to a current price of €41.36 — trading 17.7% above its estimated fair value. The current Debt-to-Equity is 0.93, which is 15% above median its 10-year median of 0.81 and 75.5% above the Transportation industry median of 0.53. Southwest Airlines Co's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Debt-to-Equity is 0.93 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southwest Airlines Co (FRA:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €41.36 is trading 17.7% above its estimated GF Value™ of €35.14.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for FRA:SWN:
Debt-to-Equity: 0.93 (15% above median its 10-year median of 0.81)
GF Value™: €35.14 vs. price of €41.36 (17.7% above fair value)
Industry Position: 75.5% above the Transportation median (#629 of 909)
No single metric tells the full story. See the FRA:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 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 operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
82GF Score
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