Southwest Airlines Balance Sheet Health
Financial Health criteria checks 3/6
Southwest Airlines has a total shareholder equity of $10.5B and total debt of $8.0B, which brings its debt-to-equity ratio to 76.4%. Its total assets and total liabilities are $35.6B and $25.1B respectively. Southwest Airlines's EBIT is $373.0M making its interest coverage ratio -1.1. It has cash and short-term investments of $10.0B.
Key information
76.4%
Debt to equity ratio
US$8.00b
Debt
| Interest coverage ratio | -1.1x |
| Cash | US$10.00b |
| Equity | US$10.47b |
| Total liabilities | US$25.10b |
| Total assets | US$35.56b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: LUV *'s short term assets ($12.8B) do not cover its short term liabilities ($14.1B).
Long Term Liabilities: LUV *'s short term assets ($12.8B) exceed its long term liabilities ($11.0B).
Debt to Equity History and Analysis
Debt Level: LUV * has more cash than its total debt.
Reducing Debt: LUV *'s debt to equity ratio has increased from 24.6% to 76.4% over the past 5 years.
Debt Coverage: LUV *'s debt is not well covered by operating cash flow (11.4%).
Interest Coverage: LUV * earns more interest than it pays, so coverage of interest payments is not a concern.