Southwest Airlines Balance Sheet Health
Financial Health criteria checks 5/6
Southwest Airlines has a total shareholder equity of $10.5B and total debt of $7.9B, which brings its debt-to-equity ratio to 75.2%. Its total assets and total liabilities are $36.5B and $26.0B respectively. Southwest Airlines's EBIT is $879.0M making its interest coverage ratio -2.5. It has cash and short-term investments of $11.5B.
Key information
75.2%
Debt to equity ratio
US$7.90b
Debt
| Interest coverage ratio | -2.5x |
| Cash | US$11.47b |
| Equity | US$10.52b |
| Total liabilities | US$25.97b |
| Total assets | US$36.49b |
Recent financial health updates
Here's Why Southwest Airlines (NYSE:LUV) Has A Meaningful Debt Burden
Apr 02
Here's Why Southwest Airlines (NYSE:LUV) Has A Meaningful Debt Burden
Dec 18These 4 Measures Indicate That Southwest Airlines (NYSE:LUV) Is Using Debt Extensively
Sep 12Southwest Airlines (NYSE:LUV) Has A Pretty Healthy Balance Sheet
Jun 04We Think Southwest Airlines (NYSE:LUV) Is Taking Some Risk With Its Debt
Feb 10Southwest Airlines (NYSE:LUV) Seems To Use Debt Quite Sensibly
Sep 29Recent updates
Here's Why Southwest Airlines (NYSE:LUV) Has A Meaningful Debt Burden
Apr 02Southwest Airlines: Maintain Hold Amid Higher Costs And Boeing Turmoil
Mar 13The Returns On Capital At Southwest Airlines (NYSE:LUV) Don't Inspire Confidence
Mar 02Southwest Airlines' (NYSE:LUV) Conservative Accounting Might Explain Soft Earnings
Feb 13Southwest Airlines' (NYSE:LUV) Dividend Will Be $0.18
Feb 09Southwest Airlines: Risking Going From One Extreme To The Other
Feb 02Is Now The Time To Look At Buying Southwest Airlines Co. (NYSE:LUV)?
Feb 01Here's The Price I'll Buy Southwest Airlines Stock
Jan 23Southwest Airlines Co.'s (NYSE:LUV) P/E Is On The Mark
Jan 02Love Southwest Airlines, But Not At This Price
Dec 29Here's Why Southwest Airlines (NYSE:LUV) Has A Meaningful Debt Burden
Dec 18Southwest Airlines: Assessing The Holiday Season's Flight Path
Dec 14Southwest Airlines: Another Possible Holiday Disaster As Possible Pilot Strike Looms?
Nov 20There Are Reasons To Feel Uneasy About Southwest Airlines' (NYSE:LUV) Returns On Capital
Nov 15Southwest Airlines: More Pain To Come?
Nov 07Is Now The Time To Look At Buying Southwest Airlines Co. (NYSE:LUV)?
Oct 31Southwest Airlines Gets Neutral Rating As Earnings Turbulence Roars Over Soaring Revenue
Oct 22Southwest Airlines Suffers Through Its Annus Horribilis (Rating Upgrade)
Sep 26Southwest Airlines: Up To 80% Undervalued If It Weren't For Macro Challenges
Sep 19These 4 Measures Indicate That Southwest Airlines (NYSE:LUV) Is Using Debt Extensively
Sep 12Southwest Airlines: Losing Its 'Operational Premium' Compared To Larger Peers
Aug 26Southwest Airlines' (NYSE:LUV) Returns On Capital Not Reflecting Well On The Business
Aug 09Not Loving Southwest As An Income Investor
Aug 08Southwest Airlines Has Clipped Wings Ahead Of Q2 Earnings
Jul 26At US$37.20, Is Southwest Airlines Co. (NYSE:LUV) Worth Looking At Closely?
Jul 25Southwest: Hold For Short Run, Buy For Long Term
Jul 06Southwest Airlines: Remains A Top Pick On Resilience And Adaptability
Jun 27Southwest Airlines: Time To Show Some Love For LUV
Jun 09Southwest Airlines (NYSE:LUV) Has A Pretty Healthy Balance Sheet
Jun 04Is Southwest Airlines Co. (NYSE:LUV) Trading At A 46% Discount?
May 08Is It Too Late To Consider Buying Southwest Airlines Co. (NYSE:LUV)?
Apr 24Some Investors May Be Worried About Southwest Airlines' (NYSE:LUV) Returns On Capital
Mar 27Southwest Airlines: Weighing The Rewards Against The Risks
Feb 21We Think Southwest Airlines (NYSE:LUV) Is Taking Some Risk With Its Debt
Feb 10Is Southwest Airlines A Good Investment After Its Epic Holiday Meltdown?
Jan 31Is Southwest Airlines Co. (NYSE:LUV) Trading At A 40% Discount?
Jan 29Southwest Airlines: No Strike Meltdown
Jan 20Should You Think About Buying Southwest Airlines Co. (NYSE:LUV) Now?
Jan 17Southwest reaches new agreement with unions for its flight instructors and technicians
Jan 13Southwest Airlines (NYSE:LUV) May Have Issues Allocating Its Capital
Dec 21Southwest Airlines reinstates quarterly dividend of $0.18, payable in January 2023
Dec 07Southwest Airlines May Take A Back Seat To The Legacy Carriers
Oct 24At US$32.43, Is Southwest Airlines Co. (NYSE:LUV) Worth Looking At Closely?
Oct 14Southwest Airlines (NYSE:LUV) Seems To Use Debt Quite Sensibly
Sep 29Financial Position Analysis
Short Term Liabilities: LUV's short term assets ($14.0B) exceed its short term liabilities ($12.3B).
Long Term Liabilities: LUV's short term assets ($14.0B) exceed its long term liabilities ($13.7B).
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 25.8% to 75.2% over the past 5 years.
Debt Coverage: LUV's debt is well covered by operating cash flow (40%).
Interest Coverage: LUV earns more interest than it pays, so coverage of interest payments is not a concern.