Southwest Airlines Balance Sheet Health
Financial Health criteria checks 4/6
Southwest Airlines has a total shareholder equity of $10.2B and total debt of $8.0B, which brings its debt-to-equity ratio to 78.2%. Its total assets and total liabilities are $36.0B and $25.8B respectively. Southwest Airlines's EBIT is $770.0M making its interest coverage ratio -2.1. It has cash and short-term investments of $10.5B.
Key information
78.2%
Debt to equity ratio
US$7.97b
Debt
Interest coverage ratio | -2.1x |
Cash | US$10.51b |
Equity | US$10.20b |
Total liabilities | US$25.82b |
Total assets | US$36.02b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: SWN's short term assets ($13.3B) exceed its short term liabilities ($12.2B).
Long Term Liabilities: SWN's short term assets ($13.3B) do not cover its long term liabilities ($13.6B).
Debt to Equity History and Analysis
Debt Level: SWN has more cash than its total debt.
Reducing Debt: SWN's debt to equity ratio has increased from 25.3% to 78.2% over the past 5 years.
Debt Coverage: SWN's debt is well covered by operating cash flow (29.5%).
Interest Coverage: SWN earns more interest than it pays, so coverage of interest payments is not a concern.