Southwest Airlines Co (FRA:SWN) ROCE %: 7.52% (As of Mar. 2026)


FRA:SWN Southwest Airlines Co FRA:SWN
82 GF Score
Price €43.27
GF Value €35.02
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Southwest Airlines Co ROCE %?

Southwest Airlines Co FRA:SWN +3.15% 82 ROCE % is 7.52% as of Mar. 2026. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €35.02 (Modestly Overvalued). The stock has 6 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Southwest Airlines Co's annualized ROCE % for the quarter that ended in Mar. 2026 was 7.52%.

Southwest Airlines Co  (FRA:SWN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Southwest Airlines Co ROCE % Related Terms

Southwest Airlines Co ROCE % Historical Data

* Premium members only.

The historical data trend for Southwest Airlines Co's ROCE % 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 ROCE % Chart

Southwest Airlines Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.71 4.08 3.48 3.63 3.21

Southwest Airlines Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % 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 -3.03 6.37 2.03 9.92 7.52
FRA:SWN
82GF Score
Southwest Airlines Co FRA:SWN
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Southwest Airlines Co ROCE % Calculation

Southwest Airlines Co's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=577.304/( ( (32231.25 - 11723.58) + (24818.094 - 9326.534) )/ 2 )
=577.304/( (20507.67+15491.56)/ 2 )
=577.304/17999.615
=3.21 %

Southwest Airlines Co's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1131.42/( ( (24818.094 - 9326.534) + (25392.075 - 10798.66) )/ 2 )
=1131.42/( ( 15491.56 + 14593.415 )/ 2 )
=1131.42/15042.4875
=7.52 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 7.52% mean?
Southwest Airlines Co (FRA:SWN) has a ROCE % of 7.52% as of Mar. 2026.
Is Southwest Airlines Co's ROCE % too high?
Southwest Airlines Co's current ROCE % is 7.52%. The Transportation industry median ROCE % is 7.73. Southwest Airlines Co's value of 7.52% is 2.7% below this industry median. 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 ROCE % compare to AAL and CPA?
Southwest Airlines Co's ROCE % of 7.52% can be compared against companies in the Transportation industry. The industry median ROCE % is 7.73. Southwest Airlines Co's value of 7.52% is 2.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Transportation company?
The median ROCE % among Transportation companies is 7.73, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current ROCE % of 7.52% is 2.7% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median ROCE % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current ROCE % is 7.52%. 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 €35.02, compared to a current price of €43.27 — trading 23.6% above its estimated fair value. The current ROCE % is 7.52% and 2.7% below the Transportation industry median of 7.73. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current ROCE % is 7.52% 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 €43.27 is trading 23.6% above its estimated GF Value™ of €35.02. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for FRA:SWN:

  • ROCE %: 7.52%
  • GF Value™: €35.02 vs. price of €43.27 (23.6% above fair value)
  • GF Score™: 82/100 with 6 warning signs
  • Industry Position: 2.7% below the Transportation median

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 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 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

Get the complete analysis for FRA:SWN

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€43.27
Price
€35.02
GF Value