GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Southwest Airlines Co (BSP:S1OU34) » Definitions » EBIT

Southwest Airlines Co (BSP:S1OU34) EBIT : R$1,350 Mil (TTM As of Sep. 2024)


View and export this data going back to 2020. Start your Free Trial

What is Southwest Airlines Co EBIT?

Southwest Airlines Co's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2024 was R$792 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2024 was R$1,350 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Southwest Airlines Co's annualized ROC % for the quarter that ended in Sep. 2024 was 0.34%. Southwest Airlines Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 2.78%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Southwest Airlines Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2024 was 1.39%.


Southwest Airlines Co EBIT Historical Data

The historical data trend for Southwest Airlines Co's EBIT 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 EBIT Chart

Southwest Airlines Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12,473.58 -20,280.41 9,930.00 5,397.52 4,257.93

Southwest Airlines Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,461.86 -1,117.15 -1,195.15 2,870.79 791.91

Competitive Comparison of Southwest Airlines Co's EBIT

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

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

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



Southwest Airlines Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R$1,350 Mil.

* 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  (BSP:S1OU34) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Southwest Airlines Co's annualized ROC % for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=841.744 * ( 1 - 24.72% )/( (184430.836 + 188623.006)/ 2 )
=633.6648832/186526.921
=0.34 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=191545.874 - 14450.906 - ( 53871.772 - max(0, 76014.029 - 68678.161+53871.772))
=184430.836

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=192975.717 - 12986.141 - ( 51955.64 - max(0, 74699.384 - 66065.954+51955.64))
=188623.006

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Southwest Airlines Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2024  Q: Sep. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3167.62/( ( (112014.722 + max(-51211.038, 0)) + (115596.037 + max(-49480.243, 0)) )/ 2 )
=3167.62/( ( 112014.722 + 115596.037 )/ 2 )
=3167.62/113805.3795
=2.78 %

where Working Capital is:

Working Capital(Q: Jun. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(360.869 + 4222.702 + 3366.313) - (14450.906 + 38165.905 + 6544.111)
=-51211.038

Working Capital(Q: Sep. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(276.89 + 4264.106 + 3333.755) - (12986.141 + 37341.385 + 7027.468)
=-49480.243

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Southwest Airlines Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2024 )
=1350.39/96958.244
=1.39 %

* 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 EBIT Related Terms

Thank you for viewing the detailed overview of Southwest Airlines Co's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.


Southwest Airlines Co Business Description

Address
P.O. Box 36611, Dallas, TX, USA, 75235-1611
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 in a single, open-seating cabin configuration in a point-to-point network. In 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.

Southwest Airlines Co Headlines

No Headlines