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Southwest Airlines CoFRA:SWN -4.61%84 Equity-to-Asset is 0.24 as of Jun. 2026, which is 20% below its 10-year median of 0.30. GuruFocus rates FRA:SWN with a GF Score™ of 84/100 and a GF Value™ of €36.33 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,013 Transportation companies, Southwest Airlines Co ranks worse than 83.61% on this metric.
The historical rank and industry rank for Southwest Airlines Co's Equity-to-Asset or its related term are showing as below:
FRA:SWN'
s Equity-to-Asset Range Over the Past 10 Years
Min: 0.23 Med: 0.3 Max: 0.38
Current: 0.24
During the past 13 years, the highest Equity to Asset Ratio of Southwest Airlines Co was 0.38. The lowest was 0.23. And the median was 0.30.
FRA:SWN's Equity-to-Asset is ranked worse than 83.61% of 1013
companies
in the Transportation industry
Industry Median: 0.5
vs FRA:SWN: 0.24
Southwest Airlines Co (FRA:SWN) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Southwest Airlines Co Equity-to-Asset Related Terms
Southwest Airlines Co Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's Equity-to-Asset 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: Equity-to-Asset Comparison
For the Airlines subindustry, Southwest Airlines Co's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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 Equity-to-Asset vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Southwest Airlines Co's Equity to Asset Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Equity-to-Asset of 0.24 as of Jun. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Southwest Airlines Co and its competitors. This is 20% below median its historical median of 0.30. Over the past decade, Southwest Airlines Co's Equity-to-Asset has ranged from 0.23 to 0.38. According to the industry distribution chart, Southwest Airlines Co ranks #847 out of 1013 companies in the Transportation industry, placing it in the top 83.6%.
Is Southwest Airlines Co's Equity-to-Asset too high?
Southwest Airlines Co's current Equity-to-Asset of 0.24 is 20% below median its 10-year median of 0.30. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 0.38. The Transportation industry median Equity-to-Asset is 0.50. Southwest Airlines Co's value of 0.24 is 52% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #847 out of 1013 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Equity-to-Asset compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #847 out of 1013 companies for Equity-to-Asset. This places Southwest Airlines Co in the lower half of its industry. The industry median Equity-to-Asset is 0.50. Southwest Airlines Co's value of 0.24 is 52% below this benchmark. Historically, Southwest Airlines Co's own Equity-to-Asset has ranged from 0.23 to 0.38 over the past decade. While the company's 10-year median is 0.30 vs. the industry median of 0.50, Southwest Airlines Co has consistently been below 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 Equity-to-Asset for a Transportation company?
The median Equity-to-Asset among Transportation companies is 0.50, based on 1,013 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Equity-to-Asset of 0.24 is 52% below 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Equity-to-Asset is 0.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Equity-to-Asset is 0.24, which is 20% below median its own 10-year median of 0.30. 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 Fairly Valued. The stock's GF Value™ is €36.33, compared to a current price of €38.90 — trading 7.1% above its estimated fair value. The current Equity-to-Asset is 0.24, which is 20% below median its 10-year median of 0.30 and 52% below the Transportation industry median of 0.50. Southwest Airlines Co's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Equity-to-Asset is 0.24 as of Jun. 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 €38.90 is trading 7.1% above its estimated GF Value™ of €36.33.
GuruFocus considers Southwest Airlines Co to be Fairly Valued.
Key valuation signals for FRA:SWN:
Equity-to-Asset: 0.24 (20% below median its 10-year median of 0.30)
GF Value™: €36.33 vs. price of €38.90 (7.1% above fair value)
Industry Position: 52% below the Transportation median (#847 of 1013)
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.
84GF Score
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