Southwest Airlines CoFRA:SWN -0.59%82 Return-on-Tangible-Asset is 3.27% as of Mar. 2026, which is 48% above its 10-year median of 2.21. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €36.23 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,009 Transportation companies, Southwest Airlines Co ranks worse than 56.59% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Southwest Airlines Co's annualizedNet Income for the quarter that ended in Mar. 2026 was €785 Mil. Southwest Airlines Co's average total tangible assets for the quarter that ended in Mar. 2026 was €24,017 Mil. Therefore, Southwest Airlines Co's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 3.27%.
The historical rank and industry rank for Southwest Airlines Co's Return-on-Tangible-Asset or its related term are showing as below:
FRA:SWN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -10.61 Med: 2.21 Max: 14.72
Current: 2.87
During the past 13 years, Southwest Airlines Co's highest Return-on-Tangible-Asset was 14.72%. The lowest was -10.61%. And the median was 2.21%.
FRA:SWN's Return-on-Tangible-Asset is ranked worse than 56.59% of 1009
companies
in the Transportation industry
Industry Median: 3.76
vs FRA:SWN: 2.87
Southwest Airlines Co (FRA:SWN) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Southwest Airlines Co Return-on-Tangible-Asset Related Terms
Southwest Airlines Co Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's Return-on-Tangible-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.
Southwest Airlines Co Return-on-Tangible-Asset Chart
FRA:SWN vs AAL, UAL, CPA: Return-on-Tangible-Asset Comparison
For the Airlines subindustry, Southwest Airlines Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-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 Return-on-Tangible-Asset vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 3.27% mean?
Southwest Airlines Co (FRA:SWN) has a Return-on-Tangible-Asset of 3.27% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southwest Airlines Co and its competitors. This is 48% above median its historical median of 2.21. According to the industry distribution chart, Southwest Airlines Co ranks #571 out of 1009 companies in the Transportation industry, placing it in the top 56.6%.
Is Southwest Airlines Co's Return-on-Tangible-Asset too high?
Southwest Airlines Co's current Return-on-Tangible-Asset of 3.27% is 48% above median its 10-year median of 2.21. The Transportation industry median Return-on-Tangible-Asset is 3.76. Southwest Airlines Co's value of 3.27% is 13% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #571 out of 1009 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 Return-on-Tangible-Asset compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #571 out of 1009 companies for Return-on-Tangible-Asset. This places Southwest Airlines Co in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.76. Southwest Airlines Co's value of 3.27% is 13% below this benchmark. While the company's 10-year median is 2.21 vs. the industry median of 3.76, 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 Return-on-Tangible-Asset for a Transportation company?
The median Return-on-Tangible-Asset among Transportation companies is 3.76, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Return-on-Tangible-Asset of 3.27% is 13% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Return-on-Tangible-Asset is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Return-on-Tangible-Asset is 3.27%, which is 48% above median its own 10-year median of 2.21. 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 Return-on-Tangible-Asset is 3.27%, which is 48% above median its 10-year median of 2.21 and 13% below the Transportation industry median of 3.76. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Return-on-Tangible-Asset is 3.27% 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:
Return-on-Tangible-Asset: 3.27% (48% above median its 10-year median of 2.21)
GF Value™: €36.23 vs. price of €43.85 (21% above fair value)
Industry Position: 13% below the Transportation median (#571 of 1009)
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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