Southwest Airlines Co (FRA:SWN) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Southwest Airlines Co Effective Interest Rate on Debt % Related Terms
Southwest Airlines Co Effective Interest Rate on Debt % Historical Data
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The historical data trend for Southwest Airlines Co's Effective Interest Rate on Debt % 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.
Southwest Airlines Co Effective Interest Rate on Debt % Chart
FRA:SWN vs AAL, UAL, CPA: Effective Interest Rate on Debt % Comparison
For the Airlines subindustry, Southwest Airlines Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Effective Interest Rate on Debt % 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.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 2.73% mean?
Southwest Airlines Co (FRA:SWN) has a Effective Interest Rate on Debt % of 2.73% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Southwest Airlines Co and its competitors.
Is Southwest Airlines Co's Effective Interest Rate on Debt % too high?
Southwest Airlines Co's current Effective Interest Rate on Debt % is 2.73%. 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 Effective Interest Rate on Debt % compare to AAL and UAL?
Southwest Airlines Co's Effective Interest Rate on Debt % of 2.73% can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Transportation company?
A good Effective Interest Rate on Debt % depends on the Transportation industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Southwest Airlines Co and its competitors. Southwest Airlines Co's current Effective Interest Rate on Debt % is 2.73%. 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 €36.23, compared to a current price of €43.85 — trading 21% above its estimated fair value. The current Effective Interest Rate on Debt % is 2.73%. Southwest Airlines Co's overall GF Score™ is 82/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Effective Interest Rate on Debt % is 2.73% 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 €43.85 is trading 21% above its estimated GF Value™ of €36.23.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for FRA:SWN:
Effective Interest Rate on Debt %: 2.73%
GF Value™: €36.23 vs. price of €43.85 (21% above fair value)
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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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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