Southwest Airlines CoSTU:SWN +4.13%83 Quick Ratio is 0.41 as of Mar. 2026, which is 41% below its 10-year median of 0.69. GuruFocus rates STU:SWN with a GF Score™ of 83/100 and a GF Value™ of €36.52 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,010 Transportation companies, Southwest Airlines Co ranks worse than 92.57% on this metric.
Southwest Airlines Co has a quick ratio of 0.41. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Southwest Airlines Co's Quick Ratio or its related term are showing as below:
STU:SWN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.41 Med: 0.69 Max: 2.01
Current: 0.41
During the past 13 years, Southwest Airlines Co's highest Quick Ratio was 2.01. The lowest was 0.41. And the median was 0.69.
STU:SWN's Quick Ratio is ranked worse than 92.57% of 1010
companies
in the Transportation industry
Industry Median: 1.37
vs STU:SWN: 0.41
Southwest Airlines Co (STU:SWN) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Southwest Airlines Co Quick Ratio Related Terms
Southwest Airlines Co Quick Ratio Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's Quick Ratio 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.
For the Airlines subindustry, Southwest Airlines Co's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Southwest Airlines Co's Quick 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 (STU:SWN) has a Quick Ratio of 0.41 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Southwest Airlines Co and its competitors. This is 41% below median its historical median of 0.69. Over the past decade, Southwest Airlines Co's Quick Ratio has ranged from 0.41 to 2.01. According to the industry distribution chart, Southwest Airlines Co ranks #935 out of 1010 companies in the Transportation industry, placing it in the top 92.6%.
Is Southwest Airlines Co's Quick Ratio too high?
Southwest Airlines Co's current Quick Ratio of 0.41 is 41% below median its 10-year median of 0.69. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 2.01. The Transportation industry median Quick Ratio is 1.37. Southwest Airlines Co's value of 0.41 is 70.1% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #935 out of 1010 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Quick Ratio compare to AAL and CPA?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #935 out of 1010 companies for Quick Ratio. This places Southwest Airlines Co in the lower half of its industry. The industry median Quick Ratio is 1.37. Southwest Airlines Co's value of 0.41 is 70.1% below this benchmark. Historically, Southwest Airlines Co's own Quick Ratio has ranged from 0.41 to 2.01 over the past decade. While the company's 10-year median is 0.69 vs. the industry median of 1.37, 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 Quick Ratio for a Transportation company?
The median Quick Ratio among Transportation companies is 1.37, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Quick Ratio of 0.41 is 70.1% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Quick Ratio is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Quick Ratio is 0.41, which is 41% below median its own 10-year median of 0.69. 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 (STU:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €36.52, compared to a current price of €45.12 — trading 23.5% above its estimated fair value. The current Quick Ratio is 0.41, which is 41% below median its 10-year median of 0.69 and 70.1% below the Transportation industry median of 1.37. Southwest Airlines Co's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current Quick Ratio is 0.41 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 (STU:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €45.12 is trading 23.5% above its estimated GF Value™ of €36.52.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for STU:SWN:
Quick Ratio: 0.41 (41% below median its 10-year median of 0.69)
GF Value™: €36.52 vs. price of €45.12 (23.5% above fair value)
Industry Position: 70.1% below the Transportation median (#935 of 1010)
No single metric tells the full story. See the STU: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.
83GF Score
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