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Southwest Airlines (LUV) Financials

Southwest Airlines logo
$45.09 +0.01 (+0.03%)
As of 02:26 PM Eastern
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Annual Income Statements for Southwest Airlines

Annual Income Statements for Southwest Airlines

This table shows Southwest Airlines' income and expenses over time, based on annual financial data. All values are USD millions unless otherwise specified.

Metric 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Period end date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025
Net Income / (Loss) Attributable to Common Shareholders		 2,181 2,183 3,357 2,465 2,300 -3,074 977 539 465 465 441
Consolidated Net Income / (Loss)		 2,181 2,183 3,357 2,465 2,300 -3,074 977 539 465 465 441
Net Income / (Loss) Continuing Operations		 2,181 2,183 3,357 2,465 2,300 -3,074 977 539 465 465 441
Total Pre-Tax Income 		3,479 3,450 3,265 3,164 2,957 -4,256 1,325 728 633 598 563
Total Operating Income		 4,116 3,522 3,407 3,206 2,957 -3,816 1,721 1,017 224 321 428
Total Gross Profit		 8,578 8,657 7,472 7,259 8,565 -1,602 2,427 7,611 7,534 8,078 8,633
Total Revenue		 19,820 20,289 21,146 21,965 22,428 9,048 15,790 23,814 26,091 27,483 28,063
Operating Revenue		 18,650 20,289 21,146 21,965 22,428 9,048 15,790 23,814 26,091 27,483 28,063
Total Cost of Revenue		 11,242 11,632 13,674 14,706 13,863 10,650 13,363 16,203 18,557 19,405 19,430
Operating Cost of Revenue		 11,242 11,632 13,674 14,706 13,863 10,650 13,363 16,203 18,557 19,405 19,430
Total Operating Expenses		 4,462 5,135 4,065 4,053 5,608 2,214 706 6,594 7,310 7,757 8,205
Selling, General & Admin Expense		 2,242 2,703 2,847 2,852 3,026 1,926 2,394 3,735 3,999 4,138 4,467
Depreciation Expense		 1,015 1,221 1,218 1,201 1,219 1,255 1,272 1,351 1,522 1,657 1,560
Other Operating Expenses / (Income)		 1,166 1,211 - 0.00 1,363 -967 -2,960 1,508 1,789 1,962 2,178
Total Other Income / (Expense), net		 -637 -72 -142 -42 0.00 -440 -396 -289 409 277 135
Interest Expense		 90 75 65 93 82 314 459 494 236 214 113
Interest & Investment Income		 9.00 24 35 69 90 32 13 217 583 497 205
Other Income / (Expense), net		 -556 -21 -112 -18 -8.00 -158 50 -12 62 -6.00 43
Income Tax Expense		 1,298 1,267 -92 699 657 -1,182 348 189 168 133 122
Basic Earnings per Share		 $3.30 - $5.58 $4.30 $4.28 ($5.44) $1.65 $0.91 $0.78 $0.78 $0.82
Weighted Average Basic Shares Outstanding		 661M 627M 601M 573M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Diluted Earnings per Share		 $3.27 - $5.57 $4.29 $4.27 ($5.44) $1.61 $0.87 $0.76 $0.76 $0.79
Weighted Average Diluted Shares Outstanding		 661M 627M 601M 573M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Weighted Average Basic & Diluted Shares Outstanding		 661M 627M 601M 573M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Cash Dividends to Common per Share		 $0.29 $0.00 $0.00 $0.61 $0.70 $0.18 - $0.18 $0.72 $0.72 $0.72

Quarterly Income Statements for Southwest Airlines

This table shows Southwest Airlines' income and expenses over time, based on quarterly financial data. All values are USD millions unless otherwise specified.

Metric Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Period end date 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026
Net Income / (Loss) Attributable to Common Shareholders		 -252 -231 367 67 262 -149 213 54 323 227 233
Consolidated Net Income / (Loss)		 -252 -231 367 67 262 -149 213 54 323 227 233
Net Income / (Loss) Continuing Operations		 -252 -231 367 67 262 -149 213 54 323 227 233
Total Pre-Tax Income 		-285 -298 478 89 329 -192 280 68 407 285 306
Total Operating Income		 -404 -393 398 38 278 -223 225 35 391 330 285
Total Gross Profit		 1,609 1,497 2,406 2,048 2,127 1,785 2,325 2,100 2,423 2,337 2,424
Total Revenue		 6,823 6,329 7,354 6,870 6,930 6,428 7,244 6,949 7,442 7,249 8,432
Operating Revenue		 6,823 6,329 7,354 6,870 6,930 6,428 7,244 6,949 7,442 7,249 8,432
Total Cost of Revenue		 5,214 4,832 4,948 4,822 4,803 4,643 4,919 4,849 5,019 4,912 6,008
Operating Cost of Revenue		 5,214 4,832 4,948 4,822 4,803 4,643 4,919 4,849 5,019 4,912 6,008
Total Operating Expenses		 2,013 1,890 2,008 2,010 1,849 2,008 2,100 2,065 2,032 2,007 2,139
Selling, General & Admin Expense		 1,133 1,018 1,093 1,079 948 1,090 1,133 1,123 1,121 1,037 1,101
Depreciation Expense		 415 408 404 438 407 396 400 394 370 398 402
Other Operating Expenses / (Income)		 465 464 511 493 494 522 567 548 541 572 636
Total Other Income / (Expense), net		 119 95 80 51 51 31 55 33 16 -45 21
Interest Expense		 57 58 55 54 49 35 26 22 30 42 52
Interest & Investment Income		 158 141 130 121 105 84 54 34 33 23 33
Other Income / (Expense), net		 18 12 5.00 -16 -5.00 -18 27 21 13 -26 40
Income Tax Expense		 -33 -67 111 22 67 -43 67 14 84 58 73
Basic Earnings per Share		 ($0.42) ($0.39) $0.61 $0.11 $0.45 ($0.26) $0.40 $0.10 $0.58 $0.45 $0.48
Weighted Average Basic Shares Outstanding		 596.66M 597M 599M 599M 592.66M 584M 538M 523M 491.32M 498M 489M
Diluted Earnings per Share		 ($0.36) ($0.39) $0.58 $0.11 $0.46 ($0.26) $0.39 $0.10 $0.56 $0.45 $0.47
Weighted Average Diluted Shares Outstanding		 596.66M 597M 643M 601M 592.66M 584M 541M 526M 491.32M 503M 493M
Weighted Average Basic & Diluted Shares Outstanding		 596.66M 598.46M 599.16M 599.74M 592.66M 569.87M 525.19M 517.16M 491.32M 488.77M 489.21M

Annual Cash Flow Statements for Southwest Airlines

This table details how cash moves in and out of Southwest Airlines' business through operations, investing, and financing, using annual figures. All values are USD millions unless otherwise specified.

Metric 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Period end date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025
Net Change in Cash & Equivalents		 301 97 -185 359 694 8,515 1,417 -2,988 -204 -1,779 -4,278
Net Cash From Operating Activities		 3,238 4,293 3,929 4,893 3,987 -1,127 2,322 3,790 3,164 462 1,842
Net Cash From Continuing Operating Activities		 3,012 4,693 3,929 4,893 3,987 -1,127 2,322 3,790 3,164 462 1,842
Net Income / (Loss) Continuing Operations		 2,181 2,183 3,357 2,465 2,300 -3,074 977 539 465 465 441
Consolidated Net Income / (Loss)		 2,181 2,183 3,357 2,465 2,300 -3,074 977 539 465 465 441
Depreciation Expense		 1,015 1,221 1,218 1,201 1,219 1,255 1,272 1,351 1,522 1,657 1,560
Non-Cash Adjustments To Reconcile Net Income		 0.00 21 63 0.00 0.00 -190 40 232 0.00 -92 5.00
Changes in Operating Assets and Liabilities, net		 -184 1,268 -709 1,227 468 882 33 1,668 1,177 -1,568 -164
Net Cash From Investing Activities		 -1,913 -2,272 -2,408 -2,038 -303 -16 -1,264 -3,746 -2,932 -261 -1,429
Net Cash From Continuing Investing Activities		 -1,913 -2,272 -2,408 -2,038 -303 -16 -1,264 -3,746 -2,932 -261 -1,429
Purchase of Property, Plant & Equipment		 -2,041 -2,038 -2,123 -1,922 -1,027 -515 -505 -3,924 -3,520 -2,054 -2,673
Purchase of Investments		 -1,986 -2,388 -2,380 -2,409 -2,122 -5,080 -5,824 -5,592 -6,970 -5,014 -470
Sale and/or Maturity of Investments		 2,223 2,263 2,221 2,342 2,446 4,336 5,071 5,792 7,591 5,995 1,693
Other Investing Activities, net		 -109 -109 -126 -49 400 1,243 -6.00 -22 -33 812 21
Net Cash From Financing Activities		 -1,024 -1,924 -1,706 -2,496 -2,990 9,658 359 -3,032 -436 -1,980 -4,691
Net Cash From Continuing Financing Activities		 -1,024 -1,924 -1,706 -2,496 -2,990 9,658 359 -3,032 -436 -1,980 -4,691
Repayment of Debt		 -246 -603 -602 -372 -615 -5,473 -828 -3,077 -79 -1,354 -3,301
Repurchase of Preferred Equity		 - - - - - - - 0.00 0.00 -6.00 0.00
Repurchase of Common Equity		 -1,180 -1,750 -1,600 -2,000 -2,000 -451 - 0.00 0.00 -250 -2,550
Payment of Dividends		 -180 -222 -274 -332 -372 -188 0.00 0.00 -428 -430 -399
Issuance of Debt		 500 515 615 3.00 -43 12,605 - - 0.00 0.00 1,500
Issuance of Common Equity		 46 29 29 35 40 2,342 51 45 48 60 59
Other Financing Activities, net		 36 107 126 170 0.00 823 1,136 0.00 23 0.00 0.00
Cash Interest Paid		 105 100 81 107 88 212 336 305 228 220 108

Quarterly Cash Flow Statements for Southwest Airlines

This table details how cash moves in and out of Southwest Airlines' business through operations, investing, and financing, using quarterly figures. All values are USD millions unless otherwise specified.

Metric Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Period end date 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026
Net Change in Cash & Equivalents		 -209 -921 -225 361 -994 625 -4,659 -573 329 97 463
Net Cash From Operating Activities		 425 -104 -24 114 476 860 401 286 295 1,418 529
Net Cash From Continuing Operating Activities		 425 -104 -24 114 476 860 401 286 295 1,418 529
Net Income / (Loss) Continuing Operations		 -252 -231 368 67 261 -149 213 54 323 227 233
Consolidated Net Income / (Loss)		 -252 -231 368 67 261 -149 213 54 323 227 233
Depreciation Expense		 415 408 404 438 407 396 399 394 371 398 402
Changes in Operating Assets and Liabilities, net		 262 -281 -796 -391 -102 616 -219 -162 -399 793 -106
Net Cash From Investing Activities		 -664 -585 -206 457 73 623 -882 -428 -742 -445 -559
Net Cash From Continuing Investing Activities		 -664 -585 -206 457 73 623 -882 -428 -742 -445 -559
Purchase of Property, Plant & Equipment		 -708 -583 -494 -517 -460 -527 -635 -678 -859 -630 -818
Sale of Property, Plant & Equipment		 - - - - - 26 - - - 192 258
Other Investing Activities, net		 -10 -44 - -11 867 21 - -1.00 1.00 -7.00 1.00
Net Cash From Financing Activities		 30 -232 5.00 -210 -1,543 -858 -4,178 -431 776 -876 493
Net Cash From Continuing Financing Activities		 30 -232 5.00 -210 -1,543 -858 -4,178 -431 776 -876 493
Repayment of Debt		 -7.00 -8.00 -4.00 9.00 -1,310 -18 -2,593 -5.00 -698 -49 -434
Payment of Dividends		 - -215 - -216 1.00 -107 -103 -189 - -93 -88
Issuance of Debt		 2.00 -24 - - 2.00 0.00 3.00 -1.00 1,511 500 1,000
Issuance of Common Equity		 12 15 15 16 14 17 15 14 13 16 15
Cash Interest Paid		 94 18 92 14 96 11 53 3.00 41 1.00 92

Annual Balance Sheets for Southwest Airlines

This table presents Southwest Airlines' assets and liabilities at the end of each period, using annual balance sheet data. All values are USD millions unless otherwise specified.

Metric 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Period end date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025
Total Assets		 21,312 23,286 25,110 26,243 25,895 34,588 36,320 35,369 36,487 33,750 29,061
Total Current Assets		 4,024 4,498 4,815 5,028 5,974 15,173 18,036 14,808 13,955 11,274 5,645
Cash & Equivalents		 1,583 1,680 1,495 1,854 2,548 11,063 12,480 9,492 9,288 7,509 3,231
Accounts Receivable		 474 546 662 568 1,086 1,130 1,357 1,040 1,154 1,110 1,149
Inventories, net		 311 337 420 461 529 414 537 790 807 800 775
Prepaid Expenses		 188 310 460 310 287 295 638 686 520 639 490
Plant, Property, & Equipment, net		 15,601 17,044 18,539 19,525 17,025 15,831 14,842 17,342 19,375 19,056 20,245
Plant, Property & Equipment, gross		 24,685 26,464 28,229 29,256 27,713 27,574 27,574 30,984 33,818 33,947 35,945
Accumulated Depreciation		 9,084 9,420 9,690 9,731 10,688 11,743 12,732 13,642 14,443 14,891 15,700
Total Noncurrent Assets		 1,687 1,744 1,756 1,690 2,319 3,584 3,442 3,219 3,157 3,420 3,171
Goodwill		 970 970 970 970 970 970 970 970 970 970 970
Other Noncurrent Operating Assets		 717 774 786 720 1,349 2,614 2,472 2,249 2,187 2,450 2,201
Total Liabilities & Shareholders' Equity		 21,312 23,286 25,110 26,243 25,895 34,588 36,320 35,369 36,487 33,750 29,061
Total Liabilities		 13,954 14,845 15,469 16,390 16,063 25,712 25,906 24,682 25,972 23,400 21,080
Total Current Liabilities		 7,406 6,844 6,863 7,905 8,952 7,506 9,164 10,378 12,256 12,276 10,921
Short-Term Debt		 637 566 348 606 819 220 453 42 29 1,630 324
Accounts Payable		 1,188 1,178 1,320 1,416 1,574 931 1,282 2,004 1,862 1,818 1,991
Accrued Expenses		 2,591 1,985 1,700 1,749 1,749 2,259 1,624 2,043 3,606 2,206 2,349
Current Deferred Revenue		 2,990 3,115 3,495 4,134 4,457 - 5,566 6,064 6,551 6,294 5,945
Other Current Liabilities		 - - - 0.00 353 4,096 239 225 208 328 312
Total Noncurrent Liabilities		 6,548 8,001 8,606 8,485 7,111 18,206 16,742 14,304 13,716 11,124 10,159
Long-Term Debt		 2,541 2,821 3,320 2,771 1,846 10,111 10,274 8,046 7,978 5,069 4,577
Noncurrent Deferred & Payable Income Tax Liabilities		 2,490 3,374 2,119 2,427 2,364 1,634 1,770 1,985 2,044 2,167 2,289
Other Noncurrent Operating Liabilities		 1,517 1,806 3,167 3,287 2,901 4,899 4,698 4,273 3,694 3,888 3,293
Total Equity & Noncontrolling Interests		 7,358 8,441 9,641 9,853 9,832 8,876 10,414 10,687 10,515 10,350 7,981
Total Preferred & Common Equity		 7,358 8,441 9,641 9,853 9,832 8,876 10,414 10,687 10,515 10,350 7,981
Total Common Equity		 7,358 8,441 9,641 9,853 9,832 8,876 10,414 10,687 10,515 10,350 7,981
Common Stock		 2,182 2,218 2,259 2,318 2,389 5,079 5,112 4,925 5,041 5,087 5,210
Retained Earnings		 9,409 11,418 13,832 15,967 17,945 14,777 15,774 16,261 16,297 16,332 16,388
Treasury Stock		 -3,182 -4,872 -6,462 -8,452 -10,441 -10,875 -10,860 -10,843 -10,823 -11,044 -13,593
Accumulated Other Comprehensive Income / (Loss)		 -1,051 -323 12 20 -61 -105 388 344 0.00 -25 -24

Quarterly Balance Sheets for Southwest Airlines

This table presents Southwest Airlines' assets and liabilities at the end of each period, using quarterly balance sheet data. All values are USD millions unless otherwise specified.

Metric Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q1 2026 Q2 2026
Period end date 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 3/31/2026 6/30/2026
Total Assets		 36,980 36,487 36,018 35,563 34,847 33,750 33,212 28,712 28,312 29,355 30,122
Total Current Assets		 14,631 13,955 13,281 12,751 11,930 11,274 10,734 6,092 5,395 5,969 6,482
Cash & Equivalents		 9,497 9,288 8,367 8,142 8,503 7,509 8,134 3,475 2,902 3,328 3,791
Accounts Receivable		 1,467 1,154 1,354 1,346 1,177 1,110 1,078 1,013 1,118 1,254 1,218
Inventories, net		 799 807 812 784 770 800 786 773 792 833 917
Prepaid Expenses		 632 520 603 619 601 639 618 467 467 554 556
Plant, Property, & Equipment, net		 19,075 19,375 19,561 19,665 19,773 19,056 19,157 19,401 19,705 20,376 20,642
Plant, Property & Equipment, gross		 33,464 33,818 34,097 34,521 34,864 33,947 34,251 34,823 35,275 36,153 36,387
Accumulated Depreciation		 14,389 14,443 14,536 14,856 15,091 14,891 15,094 15,422 15,570 15,777 15,745
Total Noncurrent Assets		 3,274 3,157 3,176 3,147 3,144 3,420 3,321 3,219 3,212 3,010 2,998
Goodwill		 970 970 970 970 970 970 970 970 970 970 970
Other Noncurrent Operating Assets		 2,304 2,187 2,206 2,177 2,174 2,450 2,351 2,249 2,242 2,040 2,028
Total Liabilities & Shareholders' Equity		 36,980 36,487 36,018 35,563 34,847 33,750 33,212 28,712 28,312 29,355 30,122
Total Liabilities		 25,926 25,972 25,822 25,098 24,436 23,400 23,847 20,712 20,536 22,480 23,040
Total Current Liabilities		 12,112 12,256 12,225 14,113 13,489 12,276 13,901 10,892 10,994 12,484 13,268
Short-Term Debt		 30 29 28 2,931 2,930 1,630 2,608 22 23 851 2,156
Accounts Payable		 1,736 1,862 1,949 2,028 1,518 1,818 1,925 1,811 1,708 2,114 2,072
Accrued Expenses		 2,880 3,606 2,400 1,870 2,096 2,206 1,978 2,040 2,091 2,170 2,247
Current Deferred Revenue		 7,246 6,551 7,642 7,086 6,743 6,294 7,059 6,696 6,862 7,049 6,510
Other Current Liabilities		 220 208 206 198 202 328 331 323 310 300 283
Total Noncurrent Liabilities		 13,814 13,716 13,597 10,985 10,947 11,124 9,946 9,820 9,542 9,996 9,772
Long-Term Debt		 7,984 7,978 7,974 5,065 5,075 5,069 4,086 4,081 4,079 4,536 3,790
Noncurrent Deferred & Payable Income Tax Liabilities		 2,157 2,044 1,981 2,089 2,094 2,167 2,124 2,186 2,210 2,353 2,421
Other Noncurrent Operating Liabilities		 3,673 3,694 3,642 3,831 3,778 3,888 3,736 3,553 3,253 3,107 3,561
Total Equity & Noncontrolling Interests		 11,054 10,515 10,196 10,465 10,411 10,350 9,365 8,000 7,776 6,875 7,082
Total Preferred & Common Equity		 11,054 10,515 10,196 10,465 10,411 10,350 9,365 8,000 7,776 6,875 7,082
Total Common Equity		 11,054 10,515 10,196 10,465 10,411 10,350 9,365 8,000 7,776 6,875 7,082
Common Stock		 5,023 5,041 5,026 5,039 5,068 5,087 5,098 5,135 5,171 5,148 5,182
Retained Earnings		 16,657 16,297 15,959 16,218 16,178 16,332 16,080 16,199 16,158 16,526 16,672
Treasury Stock		 -10,827 -10,823 -10,808 -10,803 -10,798 -11,044 -11,789 -13,299 -13,547 -14,798 -14,794
Accumulated Other Comprehensive Income / (Loss)		 201 0.00 19 11 -37 -25 -24 -35 -6.00 -1.00 22

Annual Metrics And Ratios for Southwest Airlines

This table displays calculated financial ratios and metrics derived from Southwest Airlines' official financial filings.

Metric 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Period end date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025
Growth Metrics		 - - - - - - - - - - -
Revenue Growth		 6.53% 2.37% 4.22% 3.87% 2.11% -59.66% 74.51% 50.82% 9.56% 5.34% 2.11%
EBITDA Growth		 60.30% 3.21% -4.43% -2.75% -5.04% -165.24% 211.92% -22.58% -23.26% 9.18% 2.99%
EBIT Growth		 85.80% -1.66% -5.88% -3.25% -7.50% -234.76% 144.56% -43.25% -71.54% 10.84% 49.52%
NOPAT Growth		 85.39% -13.63% 57.19% -28.70% -7.92% -216.14% 147.51% -40.66% -78.15% 51.69% 34.31%
Net Income Growth		 91.99% 0.09% 53.78% -26.57% -6.69% -233.65% 131.78% -44.83% -13.73% 0.00% -5.16%
EPS Growth		 99.39% 0.00% 0.00% -22.98% -0.47% -227.40% 129.60% -45.96% -12.64% 0.00% 3.95%
Operating Cash Flow Growth		 11.58% 32.58% -8.48% 24.54% -18.52% -128.27% 306.03% 63.22% -16.52% -85.40% 298.70%
Free Cash Flow Firm Growth		 -17.87% -24.38% 67.15% 50.39% 33.42% -156.55% 235.82% -103.03% -330.46% -156.31% 3.38%
Invested Capital Growth		 15.53% 13.87% 17.75% -4.93% -17.74% -5.26% -24.18% 15.01% 8.72% 18.10% 15.94%
Revenue Q/Q Growth		 1.79% -0.18% 1.53% 2.07% 0.12% -29.12% 23.82% 4.94% 2.56% 0.39% 1.86%
EBITDA Q/Q Growth		 13.58% -1.81% -3.03% 6.07% -3.96% -229.18% 89.71% -17.36% 0.06% 49.21% 4.91%
EBIT Q/Q Growth		 17.65% -3.87% -3.00% 6.66% -4.96% -91.15% 420.88% -34.91% -14.11% 192.69% 38.53%
NOPAT Q/Q Growth		 11.18% -10.20% 67.41% -30.77% -5.93% -92.44% 406.38% -37.78% -13.75% 198.78% 35.84%
Net Income Q/Q Growth		 18.86% -3.28% 62.02% -30.72% -5.78% -85.96% 48,750.00% -34.75% -6.44% 1,048.98% 16.05%
EPS Q/Q Growth		 20.66% 0.00% 0.00% -29.09% -4.04% -94.29% 994.44% -32.56% -7.32% 1,366.67% 14.49%
Operating Cash Flow Q/Q Growth		 3.85% 9.85% -3.58% 9.54% -3.97% -484.64% 57.00% 9.60% -4.64% 12.41% -8.95%
Free Cash Flow Firm Q/Q Growth		 -33.91% 5.75% 73.13% 12.19% 21.96% -250.56% 270.14% -112.45% 66.55% 47.41% -335.68%
Invested Capital Q/Q Growth		 14.45% 7.94% 13.54% -2.43% -12.31% 22.65% 2.79% 9.01% -3.91% -7.86% 8.93%
Profitability Metrics		 - - - - - - - - - - -
Gross Margin		 43.28% 42.67% 35.34% 33.05% 38.19% -17.71% 15.37% 31.96% 28.88% 29.39% 30.76%
EBITDA Margin		 23.08% 23.27% 21.34% 19.98% 18.58% -30.05% 19.27% 9.89% 6.93% 7.18% 7.24%
Operating Margin		 20.77% 17.36% 16.11% 14.60% 13.18% -42.18% 10.90% 4.27% 0.86% 1.17% 1.53%
EBIT Margin		 17.96% 17.26% 15.58% 14.51% 13.15% -43.92% 11.22% 4.22% 1.10% 1.15% 1.68%
Profit (Net Income) Margin		 11.00% 10.76% 15.88% 11.22% 10.26% -33.97% 6.19% 2.26% 1.78% 1.69% 1.57%
Tax Burden Percent		 62.69% 63.28% 102.82% 77.91% 77.78% 72.23% 73.74% 74.04% 73.46% 77.76% 78.33%
Interest Burden Percent		 97.72% 98.54% 99.09% 99.25% 100.27% 107.10% 74.82% 72.44% 221.33% 188.64% 119.53%
Effective Tax Rate		 37.31% 36.72% -2.82% 22.09% 22.22% 0.00% 26.26% 25.96% 26.54% 22.24% 21.67%
Return on Invested Capital (ROIC)		 36.96% 27.84% 37.75% 25.52% 26.45% -34.96% 19.42% 12.43% 2.43% 3.25% 3.73%
ROIC Less NNEP Spread (ROIC-NNEP)		 509.55% -15.75% -23.47% -53.33% 26.45% -11.44% 28.81% 17.19% -5.40% -4.59% -55.68%
Return on Net Nonoperating Assets (RNNOA)		 -6.09% -0.21% -0.62% -0.23% -3.09% 2.09% -9.29% -7.32% 1.95% 1.21% 1.08%
Return on Equity (ROE)		 30.86% 27.63% 37.13% 25.29% 23.37% -32.86% 10.13% 5.11% 4.39% 4.46% 4.81%
Cash Return on Invested Capital (CROIC)		 22.55% 14.87% 21.45% 30.57% 45.93% -29.55% 46.92% -1.54% -5.92% -13.35% -11.03%
Operating Return on Assets (OROA)		 17.35% 15.70% 13.62% 12.42% 11.31% -13.14% 5.00% 2.80% 0.80% 0.90% 1.50%
Return on Assets (ROA)		 10.63% 9.79% 13.87% 9.60% 8.82% -10.16% 2.76% 1.50% 1.29% 1.32% 1.40%
Return on Common Equity (ROCE)		 30.86% 27.63% 37.13% 25.29% 23.37% -32.86% 10.13% 5.11% 4.39% 4.46% 4.81%
Return on Equity Simple (ROE_SIMPLE)		 29.64% 25.86% 34.82% 25.02% 23.39% -34.63% 9.38% 5.04% 4.42% 4.49% 0.00%
Net Operating Profit after Tax (NOPAT)		 2,580 2,229 3,503 2,498 2,300 -2,671 1,269 753 165 250 335
NOPAT Margin		 13.02% 10.98% 16.57% 11.37% 10.26% -29.52% 8.04% 3.16% 0.63% 0.91% 1.19%
Net Nonoperating Expense Percent (NNEP)		 -472.59% 43.60% 61.22% 78.85% 0.00% -23.52% -9.39% -4.77% 7.83% 7.84% 59.41%
Return On Investment Capital (ROIC_SIMPLE)		 - - - - - - - 4.01% 0.89% 1.46% 2.60%
Cost of Revenue to Revenue		 56.72% 57.33% 64.66% 66.95% 61.81% 117.71% 84.63% 68.04% 71.12% 70.61% 69.24%
SG&A Expenses to Revenue		 11.31% 13.32% 13.46% 12.98% 13.49% 21.29% 15.16% 15.68% 15.33% 15.06% 15.92%
R&D to Revenue		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Operating Expenses to Revenue		 22.51% 25.31% 19.22% 18.45% 25.00% 24.47% 4.47% 27.69% 28.02% 28.22% 29.24%
Earnings before Interest and Taxes (EBIT)		 3,560 3,501 3,295 3,188 2,949 -3,974 1,771 1,005 286 317 471
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		 4,575 4,722 4,513 4,389 4,168 -2,719 3,043 2,356 1,808 1,974 2,031
Valuation Ratios		 - - - - - - - - - - -
Price to Book Value (P/BV)		 3.54 3.41 3.81 2.54 2.80 3.02 2.37 1.78 1.60 1.95 2.68
Price to Tangible Book Value (P/TBV)		 4.08 3.85 4.24 2.81 3.11 3.39 2.61 1.96 1.76 2.15 3.05
Price to Revenue (P/Rev)		 1.31 1.42 1.74 1.14 1.23 2.96 1.56 0.80 0.64 0.73 0.76
Price to Earnings (P/E)		 11.94 13.18 10.94 10.14 11.97 0.00 25.25 35.26 36.18 43.36 48.47
Dividend Yield		 0.71% 0.80% 0.77% 1.36% 1.34% 1.59% 0.00% 0.00% 3.19% 2.14% 1.74%
Earnings Yield		 8.38% 7.59% 9.14% 9.87% 8.36% 0.00% 3.96% 2.84% 2.76% 2.31% 2.06%
Enterprise Value to Invested Capital (EV/IC)		 3.49 3.39 3.70 2.59 3.33 3.41 3.53 2.28 1.90 2.18 2.39
Enterprise Value to Revenue (EV/Rev)		 1.32 1.42 1.76 1.12 1.16 2.80 1.26 0.62 0.51 0.66 0.82
Enterprise Value to EBITDA (EV/EBITDA)		 5.72 6.11 8.23 5.62 6.27 0.00 6.54 6.28 7.39 9.19 11.35
Enterprise Value to EBIT (EV/EBIT)		 7.35 8.24 11.27 7.74 8.86 0.00 11.23 14.73 46.71 57.22 48.93
Enterprise Value to NOPAT (EV/NOPAT)		 10.14 12.95 10.60 9.88 11.36 0.00 15.67 19.66 81.18 72.66 68.74
Enterprise Value to Operating Cash Flow (EV/OCF)		 8.08 6.72 9.45 5.04 6.55 0.00 8.57 3.91 4.22 39.26 12.51
Enterprise Value to Free Cash Flow (EV/FCFF)		 16.62 24.24 18.66 8.24 6.54 0.00 6.49 0.00 0.00 0.00 0.00
Leverage & Solvency		 - - - - - - - - - - -
Debt to Equity		 0.43 0.40 0.38 0.34 0.27 1.34 1.03 0.76 0.76 0.65 0.61
Long-Term Debt to Equity		 0.35 0.33 0.34 0.28 0.19 1.32 0.99 0.75 0.76 0.49 0.57
Financial Leverage		 -0.01 0.01 0.03 0.00 -0.12 -0.18 -0.32 -0.43 -0.36 -0.26 -0.02
Leverage Ratio		 2.90 2.82 2.68 2.63 2.65 3.23 3.68 3.40 3.39 3.37 3.43
Compound Leverage Factor		 2.84 2.78 2.65 2.61 2.66 3.46 2.75 2.46 7.50 6.35 4.10
Debt to Total Capital		 30.16% 28.64% 27.56% 25.53% 21.33% 57.26% 50.74% 43.08% 43.23% 39.29% 38.05%
Short-Term Debt to Total Capital		 6.05% 4.79% 2.61% 4.58% 6.55% 1.06% 2.14% 0.22% 0.16% 9.56% 2.52%
Long-Term Debt to Total Capital		 24.12% 23.85% 24.95% 20.94% 14.77% 56.20% 48.60% 42.85% 43.07% 29.73% 35.53%
Preferred Equity to Total Capital		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Noncontrolling Interests to Total Capital		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Common Equity to Total Capital		 69.84% 71.36% 72.44% 74.47% 78.67% 42.74% 49.26% 56.92% 56.77% 60.71% 61.95%
Debt to EBITDA		 0.69 0.72 0.81 0.77 0.64 -4.37 3.53 3.43 4.43 3.39 2.41
Net Debt to EBITDA		 0.03 0.02 0.09 -0.07 -0.34 0.53 -1.57 -1.78 -1.92 -1.03 0.82
Long-Term Debt to EBITDA		 0.56 0.60 0.74 0.63 0.44 -4.29 3.38 3.42 4.41 2.57 2.25
Debt to NOPAT		 1.23 1.52 1.05 1.35 1.16 -4.45 8.45 10.74 48.66 26.84 14.62
Net Debt to NOPAT		 0.05 0.04 0.11 -0.12 -0.61 0.54 -3.76 -5.58 -21.07 -8.12 4.98
Long-Term Debt to NOPAT		 0.98 1.27 0.95 1.11 0.80 -4.37 8.10 10.69 48.48 20.31 13.65
Altman Z-Score		 3.03 3.10 3.37 2.87 3.10 1.37 2.07 2.02 1.81 2.00 2.20
Noncontrolling Interest Sharing Ratio		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Liquidity Ratios		 - - - - - - - - - - -
Current Ratio		 0.54 0.66 0.70 0.64 0.67 2.02 1.97 1.43 1.14 0.92 0.52
Quick Ratio		 0.48 0.56 0.57 0.54 0.58 1.93 1.84 1.28 1.03 0.80 0.40
Cash Flow Metrics		 - - - - - - - - - - -
Free Cash Flow to Firm (FCFF)		 1,574 1,191 1,990 2,993 3,993 -2,258 3,067 -93 -400 -1,026 -992
Operating Cash Flow to CapEx		 158.65% 210.65% 185.07% 254.58% 388.22% -218.84% 459.80% 96.59% 89.89% 22.49% 68.91%
Free Cash Flow to Firm to Interest Expense		 17.49 15.87 30.62 32.18 48.70 -7.19 6.68 -0.19 -1.70 -4.75 -8.78
Operating Cash Flow to Interest Expense		 35.98 57.24 60.45 52.61 48.62 -3.59 5.06 7.67 13.41 2.14 16.30
Operating Cash Flow Less CapEx to Interest Expense		 13.30 30.07 27.78 31.95 36.10 -5.23 3.96 -0.27 -1.51 -7.37 -7.35
Efficiency Ratios		 - - - - - - - - - - -
Asset Turnover		 0.97 0.91 0.87 0.86 0.86 0.30 0.45 0.66 0.73 0.78 0.89
Accounts Receivable Turnover		 47.25 39.78 35.01 35.72 27.12 8.17 12.70 19.87 23.78 24.28 24.85
Inventory Turnover		 34.43 35.90 36.13 33.38 28.01 22.59 28.10 24.42 23.24 24.15 24.67
Fixed Asset Turnover		 1.33 1.24 1.19 1.15 1.23 0.55 1.03 1.48 1.42 1.43 1.43
Accounts Payable Turnover		 9.40 9.83 10.95 10.75 9.27 8.50 12.08 9.86 9.60 10.55 10.20
Days Sales Outstanding (DSO)		 7.73 9.17 10.43 10.22 13.46 44.70 28.74 18.37 15.35 15.03 14.69
Days Inventory Outstanding (DIO)		 10.60 10.17 10.10 10.93 13.03 16.16 12.99 14.95 15.71 15.11 14.79
Days Payable Outstanding (DPO)		 38.81 37.12 33.34 33.95 39.36 42.93 30.22 37.01 38.02 34.61 35.78
Cash Conversion Cycle (CCC)		 -20.49 -17.78 -12.81 -12.80 -12.87 17.93 11.51 -3.70 -6.97 -4.46 -6.29
Capital & Investment Metrics		 - - - - - - - - - - -
Invested Capital		 7,485 8,523 10,036 9,541 7,848 7,435 5,637 6,483 7,048 8,324 9,651
Invested Capital Turnover		 2.84 2.53 2.28 2.24 2.58 1.18 2.42 3.93 3.86 3.58 3.12
Increase / (Decrease) in Invested Capital		 1,006 1,038 1,513 -495 -1,693 -413 -1,798 846 565 1,276 1,327
Enterprise Value (EV)		 26,159 28,861 37,124 24,673 26,122 25,322 19,890 14,802 13,359 18,137 23,044
Market Capitalization		 26,032 28,779 36,729 24,985 27,529 26,763 24,667 19,006 16,826 20,163 21,374
Book Value per Share		 $11.31 $13.71 $16.25 $17.52 $18.68 $15.04 $17.59 $18.00 $17.64 $17.26 $15.43
Tangible Book Value per Share		 $9.82 $12.14 $14.61 $15.80 $16.84 $13.39 $15.95 $16.37 $16.01 $15.64 $13.56
Total Capital		 10,536 11,828 13,309 13,230 12,497 20,769 21,141 18,775 18,522 17,049 12,882
Total Debt		 3,178 3,387 3,668 3,377 2,665 11,893 10,727 8,088 8,007 6,699 4,901
Total Long-Term Debt		 2,541 2,821 3,320 2,771 1,846 11,673 10,274 8,046 7,978 5,069 4,577
Net Debt		 127 82 395 -312 -1,407 -1,441 -4,777 -4,204 -3,467 -2,026 1,670
Capital Expenditures (CapEx)		 2,041 2,038 2,123 1,922 1,027 515 505 3,924 3,520 2,054 2,673
Debt-free, Cash-free Net Working Capital (DFCFNWC)		 -5,796 -5,085 -4,973 -5,960 -6,231 -5,447 -6,179 -7,820 -9,746 -8,097 -8,183
Debt-free Net Working Capital (DFNWC)		 -2,745 -1,780 -1,700 -2,271 -2,159 7,887 9,325 4,472 1,728 628 -4,952
Net Working Capital (NWC)		 -3,382 -2,346 -2,048 -2,877 -2,978 7,667 8,872 4,430 1,699 -1,002 -5,276
Net Nonoperating Expense (NNE)		 399 46 146 33 0.00 403 292 214 -300 -215 -106
Net Nonoperating Obligations (NNO)		 127 82 395 -312 -1,984 -1,441 -4,777 -4,204 -3,467 -2,026 1,670
Total Depreciation and Amortization (D&A)		 1,015 1,221 1,218 1,201 1,219 1,255 1,272 1,351 1,522 1,657 1,560
Debt-free, Cash-free Net Working Capital to Revenue		 -29.24% -25.06% -23.52% -27.13% -27.78% -60.20% -39.13% -32.84% -37.35% -29.46% -29.16%
Debt-free Net Working Capital to Revenue		 -13.85% -8.77% -8.04% -10.34% -9.63% 87.17% 59.06% 18.78% 6.62% 2.29% -17.65%
Net Working Capital to Revenue		 -17.06% -11.56% -9.69% -13.10% -13.28% 84.74% 56.19% 18.60% 6.51% -3.65% -18.80%
Earnings Adjustments		 - - - - - - - - - - -
Adjusted Basic Earnings per Share		 $3.30 $3.58 $5.80 $0.00 $4.28 ($5.44) $1.65 $0.91 $0.78 $0.78 $0.82
Adjusted Weighted Average Basic Shares Outstanding		 638.07M 615.25M 587.95M 552.69M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Adjusted Diluted Earnings per Share		 $3.27 $3.55 $5.79 $0.00 $4.27 ($5.44) $1.61 $0.87 $0.76 $0.76 $0.79
Adjusted Weighted Average Diluted Shares Outstanding		 638.07M 615.25M 587.95M 552.69M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Adjusted Basic & Diluted Earnings per Share		 $0.00 $0.00 $0.00 $0.00 $4.28 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding		 638.07M 615.25M 587.95M 552.69M 517.30M 1.18B 592.34M 594.29M 596.66M 592.66M 491.32M
Normalized Net Operating Profit after Tax (NOPAT)		 2,605 2,229 2,385 2,498 2,300 -2,671 1,269 753 165 250 335
Normalized NOPAT Margin		 13.14% 10.98% 11.28% 11.37% 10.26% -29.52% 8.04% 3.16% 0.63% 0.91% 1.19%
Pre Tax Income Margin		 17.55% 17.00% 15.44% 14.40% 13.18% -47.04% 8.39% 3.06% 2.43% 2.18% 2.01%
Debt Service Ratios		 - - - - - - - - - - -
EBIT to Interest Expense		 39.56 46.68 50.69 34.28 35.96 -12.66 3.86 2.03 1.21 1.47 4.17
NOPAT to Interest Expense		 28.67 29.71 53.89 26.86 28.05 -8.51 2.76 1.52 0.70 1.16 2.97
EBIT Less CapEx to Interest Expense		 16.88 19.51 18.03 13.61 23.44 -14.30 2.76 -5.91 -13.70 -8.04 -19.49
NOPAT Less CapEx to Interest Expense		 5.99 2.54 21.23 6.19 15.52 -10.15 1.66 -6.42 -14.22 -8.35 -20.69
Payout Ratios		 - - - - - - - - - - -
Dividend Payout Ratio		 8.25% 10.17% 8.16% 13.47% 16.17% -6.12% 0.00% 0.00% 92.04% 92.47% 90.48%
Augmented Payout Ratio		 62.36% 90.33% 55.82% 94.60% 103.13% -20.79% 0.00% 0.00% 92.04% 146.24% 668.71%

Quarterly Metrics And Ratios for Southwest Airlines

This table displays calculated financial ratios and metrics derived from Southwest Airlines' official financial filings.

Metric Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026
Period end date 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026
DEI Shares Outstanding		 - - - - - - - - - 491,317,990.00 488,773,713.00
DEI Adjusted Shares Outstanding		 - - - - - - - - - 491,317,990.00 488,773,713.00
DEI Earnings Per Adjusted Shares Outstanding		 - - - - - - - - - 0.46 0.48
Growth Metrics		 - - - - - - - - - - -
Revenue Growth		 10.55% 10.92% 4.50% 5.29% 1.57% 1.56% -1.50% 1.15% 7.39% 12.77% 16.40%
EBITDA Growth		 3.57% -71.58% -30.91% -10.85% 2,244.83% 474.07% -19.33% -2.17% 14.31% 352.90% 11.67%
EBIT Growth		 -13.86% -41.11% -49.75% -84.29% 170.73% 36.75% -37.47% 154.55% 49.08% 226.14% 28.97%
NOPAT Growth		 -4.94% -38.38% -50.14% -69.98% 178.28% 43.26% -43.99% -2.84% 40.16% 268.38% 26.79%
Net Income Growth		 -14.55% -45.28% -46.27% -65.29% 203.97% 35.50% -41.96% -19.40% 23.28% 252.35% 9.39%
EPS Growth		 -20.00% -44.44% -46.30% -64.52% 227.78% 33.33% -32.76% -9.09% 21.74% 273.08% 20.51%
Operating Cash Flow Growth		 -26.60% -114.73% -101.69% -81.49% 12.00% 926.92% 1,770.83% 150.88% -38.03% 64.88% 31.92%
Free Cash Flow Firm Growth		 24.00% -624.19% -91.20% -29.22% -24.39% 78.72% 124.11% 112.08% 3.60% -211.86% -306.46%
Invested Capital Growth		 8.72% 15.42% 27.49% 23.16% 18.10% 1.57% -2.31% -1.93% 15.94% 14.44% 11.77%
Revenue Q/Q Growth		 4.57% -7.24% 16.20% -6.58% 0.87% -7.24% 12.69% -4.07% 7.09% -2.59% 16.32%
EBITDA Q/Q Growth		 -94.38% -6.90% 2,888.89% -43.00% 47.83% -77.21% 320.00% -30.88% 72.22% -9.42% 3.56%
EBIT Q/Q Growth		 -375.71% 1.30% 205.77% -94.54% 1,140.91% -188.28% 204.56% -77.78% 621.43% -24.75% 6.91%
NOPAT Q/Q Growth		 -396.81% 2.72% 211.08% -90.64% 673.89% -170.51% 209.65% -83.76% 1,016.43% -15.29% -17.44%
Net Income Q/Q Growth		 -230.57% 8.33% 258.87% -81.74% 291.04% -156.87% 242.95% -74.65% 498.15% -29.72% 2.64%
EPS Q/Q Growth		 -216.13% 0.00% 248.72% -81.03% 318.18% -156.52% 250.00% -74.36% 460.00% -19.64% 4.44%
Operating Cash Flow Q/Q Growth		 -31.01% -124.47% 76.92% 575.00% 317.54% 80.67% -53.37% -28.68% 3.15% 380.68% -62.69%
Free Cash Flow Firm Q/Q Growth		 34.42% -53.59% -16.61% -10.01% 36.86% 73.73% 232.14% -44.89% -603.83% 15.00% 12.52%
Invested Capital Q/Q Growth		 -3.91% 9.05% 10.06% 6.80% -7.86% -6.21% 5.85% 7.21% 8.93% -7.43% 3.39%
Profitability Metrics		 - - - - - - - - - - -
Gross Margin		 23.58% 23.65% 32.72% 29.81% 30.69% 27.77% 32.10% 30.22% 32.56% 32.24% 28.75%
EBITDA Margin		 0.43% 0.43% 10.97% 6.70% 9.81% 2.41% 8.99% 6.48% 10.41% 9.68% 8.62%
Operating Margin		 -5.92% -6.21% 5.41% 0.55% 4.01% -3.47% 3.11% 0.50% 5.25% 4.55% 3.38%
EBIT Margin		 -5.66% -6.02% 5.48% 0.32% 3.94% -3.75% 3.48% 0.81% 5.43% 4.19% 3.85%
Profit (Net Income) Margin		 -3.69% -3.65% 4.99% 0.98% 3.78% -2.32% 2.94% 0.78% 4.34% 3.13% 2.76%
Tax Burden Percent		 88.42% 77.52% 76.78% 75.28% 79.64% 77.60% 76.07% 79.41% 79.36% 79.65% 76.14%
Interest Burden Percent		 73.83% 78.22% 118.61% 404.55% 120.51% 79.67% 111.11% 121.43% 100.74% 93.75% 94.15%
Effective Tax Rate		 0.00% 0.00% 23.22% 24.72% 20.36% 0.00% 23.93% 20.59% 20.64% 20.35% 23.86%
Return on Invested Capital (ROIC)		 -15.98% -16.19% 14.88% 1.39% 11.42% -8.65% 7.76% 1.23% 13.02% 12.51% 8.84%
ROIC Less NNEP Spread (ROIC-NNEP)		 -16.79% -17.62% 12.89% -0.11% 9.94% -9.00% 2.96% -16.66% 5.89% -1.80% 10.17%
Return on Net Nonoperating Assets (RNNOA)		 6.07% 5.29% -3.74% 0.03% -2.62% 1.87% -0.28% 0.27% -0.11% -0.06% 1.63%
Return on Equity (ROE)		 -9.91% -10.90% 11.15% 1.42% 8.81% -6.78% 7.48% 1.50% 12.91% 12.46% 10.48%
Cash Return on Invested Capital (CROIC)		 -5.92% -13.15% -26.35% -23.85% -13.35% 3.36% 5.29% 4.70% -11.03% -4.26% -1.78%
Operating Return on Assets (OROA)		 -4.11% -4.49% 4.11% 0.24% 3.08% -2.99% 2.97% 0.70% 4.85% 3.87% 3.94%
Return on Assets (ROA)		 -2.68% -2.72% 3.74% 0.74% 2.96% -1.85% 2.51% 0.68% 3.88% 2.89% 2.82%
Return on Common Equity (ROCE)		 -9.91% -10.90% 11.15% 1.42% 8.81% -6.78% 7.48% 1.50% 12.91% 12.46% 10.48%
Return on Equity Simple (ROE_SIMPLE)		 0.00% 3.85% 0.74% -0.47% 0.00% 5.84% 4.91% 0.00% 0.00% 0.00% 0.00%
Net Operating Profit after Tax (NOPAT)		 -283 -275 306 29 221 -156 171 28 310 263 217
NOPAT Margin		 -4.14% -4.35% 4.16% 0.42% 3.19% -2.43% 2.36% 0.40% 4.17% 3.63% 2.57%
Net Nonoperating Expense Percent (NNEP)		 0.80% 1.43% 1.99% 1.51% 1.48% 0.35% 4.80% 17.89% 7.13% 14.31% -1.32%
Return On Investment Capital (ROIC_SIMPLE)		 -1.53% - - - 1.30% -0.97% 1.41% 0.23% 2.41% 2.14% 1.67%
Cost of Revenue to Revenue		 76.42% 76.35% 67.28% 70.19% 69.31% 72.23% 67.90% 69.78% 67.44% 67.76% 71.25%
SG&A Expenses to Revenue		 16.61% 16.08% 14.86% 15.71% 13.68% 16.96% 15.64% 16.16% 15.06% 14.31% 13.06%
R&D to Revenue		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Operating Expenses to Revenue		 29.50% 29.86% 27.30% 29.26% 26.68% 31.24% 28.99% 29.72% 27.30% 27.69% 25.37%
Earnings before Interest and Taxes (EBIT)		 -386 -381 403 22 273 -241 252 56 404 304 325
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)		 29 27 807 460 680 155 651 450 775 702 727
Valuation Ratios		 - - - - - - - - - - -
Price to Book Value (P/BV)		 1.60 1.71 1.64 1.71 1.95 2.13 2.31 2.16 2.68 2.68 3.55
Price to Tangible Book Value (P/TBV)		 1.76 1.89 1.80 1.88 2.15 2.37 2.63 2.46 3.05 3.13 4.11
Price to Revenue (P/Rev)		 0.64 0.65 0.63 0.65 0.73 0.72 0.67 0.61 0.76 0.64 0.84
Price to Earnings (P/E)		 36.18 44.28 222.36 0.00 43.36 36.38 47.04 44.10 48.47 22.59 30.03
Dividend Yield		 3.19% 2.47% 2.52% 2.43% 2.14% 2.14% 2.22% 2.26% 1.74% 1.92% 1.40%
Earnings Yield		 2.76% 2.26% 0.45% 0.00% 2.31% 2.75% 2.13% 2.27% 2.06% 4.43% 3.33%
Enterprise Value to Invested Capital (EV/IC)		 1.90 1.94 1.79 1.81 2.18 2.35 2.27 2.01 2.39 2.30 2.95
Enterprise Value to Revenue (EV/Rev)		 0.51 0.56 0.56 0.60 0.66 0.67 0.68 0.65 0.82 0.71 0.91
Enterprise Value to EBITDA (EV/EBITDA)		 7.39 8.56 10.96 12.38 9.19 8.73 9.64 9.22 11.35 7.96 10.28
Enterprise Value to EBIT (EV/EBIT)		 46.71 85.09 0.00 0.00 57.22 40.14 61.28 52.48 48.93 20.19 25.06
Enterprise Value to NOPAT (EV/NOPAT)		 81.18 177.92 0.00 0.00 72.66 48.08 75.92 72.30 68.74 26.62 33.38
Enterprise Value to Operating Cash Flow (EV/OCF)		 4.22 6.33 16.56 39.84 39.26 12.86 10.13 8.82 12.51 8.55 10.79
Enterprise Value to Free Cash Flow (EV/FCFF)		 0.00 0.00 0.00 0.00 0.00 70.42 42.42 42.40 0.00 0.00 0.00
Leverage & Solvency		 - - - - - - - - - - -
Debt to Equity		 0.76 0.78 0.76 0.77 0.65 0.71 0.51 0.53 0.61 0.78 0.84
Long-Term Debt to Equity		 0.76 0.78 0.48 0.49 0.49 0.44 0.51 0.52 0.57 0.66 0.54
Financial Leverage		 -0.36 -0.30 -0.29 -0.24 -0.26 -0.21 -0.09 -0.02 -0.02 0.03 0.16
Leverage Ratio		 3.39 3.49 3.39 3.35 3.37 3.54 3.48 3.47 3.43 3.85 3.90
Compound Leverage Factor		 2.50 2.73 4.02 13.54 4.06 2.82 3.87 4.22 3.45 3.61 3.67
Debt to Total Capital		 43.23% 43.97% 43.31% 43.47% 39.29% 41.68% 33.90% 34.53% 38.05% 43.93% 45.64%
Short-Term Debt to Total Capital		 0.16% 0.15% 15.88% 15.91% 9.56% 16.24% 0.18% 0.19% 2.52% 6.94% 16.55%
Long-Term Debt to Total Capital		 43.07% 43.82% 27.44% 27.56% 29.73% 25.44% 33.72% 34.34% 35.53% 36.99% 29.09%
Preferred Equity to Total Capital		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Noncontrolling Interests to Total Capital		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Common Equity to Total Capital		 56.77% 56.03% 56.69% 56.53% 60.71% 58.32% 66.10% 65.47% 61.95% 56.07% 54.36%
Debt to EBITDA		 4.43 4.60 5.80 6.05 3.39 3.18 2.11 2.12 2.41 2.09 2.24
Net Debt to EBITDA		 -1.92 -1.44 -1.45 -1.04 -1.03 -0.74 0.14 0.56 0.82 0.80 0.81
Long-Term Debt to EBITDA		 4.41 4.58 3.67 3.84 2.57 1.94 2.10 2.11 2.25 1.76 1.43
Debt to NOPAT		 48.66 95.61 -48.61 -31.68 26.84 17.55 16.61 16.62 14.62 6.99 7.27
Net Debt to NOPAT		 -21.07 -29.99 12.19 5.45 -8.12 -4.08 1.07 4.39 4.98 2.67 2.64
Long-Term Debt to NOPAT		 48.48 95.28 -30.79 -20.08 20.31 10.71 16.52 16.53 13.65 5.89 4.64
Altman Z-Score		 1.75 1.77 1.80 1.82 2.00 1.87 2.11 2.03 2.19 2.03 2.19
Noncontrolling Interest Sharing Ratio		 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Liquidity Ratios		 - - - - - - - - - - -
Current Ratio		 1.14 1.09 0.90 0.88 0.92 0.77 0.56 0.49 0.52 0.48 0.49
Quick Ratio		 1.03 0.97 0.80 0.78 0.80 0.67 0.45 0.38 0.40 0.37 0.38
Cash Flow Metrics		 - - - - - - - - - - -
Free Cash Flow to Firm (FCFF)		 -848 -1,302 -1,518 -1,670 -1,055 -277 366 202 -1,017 -864 -756
Operating Cash Flow to CapEx		 60.03% -17.84% -4.86% 22.05% 103.48% 171.66% 63.15% 42.18% 34.34% 323.74% 94.46%
Free Cash Flow to Firm to Interest Expense		 -14.87 -22.45 -27.61 -30.93 -21.52 -7.92 14.08 9.17 -33.89 -20.58 -14.54
Operating Cash Flow to Interest Expense		 7.46 -1.79 -0.44 2.11 9.71 24.57 15.42 13.00 9.83 33.76 10.17
Operating Cash Flow Less CapEx to Interest Expense		 -4.96 -11.84 -9.42 -7.46 0.33 10.26 -9.00 -17.82 -18.80 23.33 -0.60
Efficiency Ratios		 - - - - - - - - - - -
Asset Turnover		 0.73 0.75 0.75 0.76 0.78 0.80 0.85 0.87 0.89 0.92 1.02
Accounts Receivable Turnover		 23.78 20.52 20.96 20.71 24.28 22.68 23.29 24.01 24.85 24.77 26.96
Inventory Turnover		 23.24 27.02 28.57 27.54 24.15 24.05 24.65 24.60 24.67 24.33 24.60
Fixed Asset Turnover		 1.42 1.42 1.41 1.41 1.43 1.42 1.41 1.40 1.43 1.46 1.50
Accounts Payable Turnover		 9.60 11.37 10.95 13.28 10.55 9.92 10.00 11.91 10.20 9.75 10.71
Days Sales Outstanding (DSO)		 15.35 17.79 17.41 17.63 15.03 16.09 15.67 15.20 14.69 14.73 13.54
Days Inventory Outstanding (DIO)		 15.71 13.51 12.77 13.25 15.11 15.18 14.81 14.84 14.79 15.00 14.84
Days Payable Outstanding (DPO)		 38.02 32.10 33.34 27.49 34.61 36.79 36.52 30.64 35.78 37.42 34.09
Cash Conversion Cycle (CCC)		 -6.97 -0.80 -3.16 3.39 -4.46 -5.52 -6.03 -0.60 -6.29 -7.69 -5.71
Capital & Investment Metrics		 - - - - - - - - - - -
Invested Capital		 7,048 7,686 8,459 9,034 8,324 7,807 8,264 8,860 9,651 8,934 9,237
Invested Capital Turnover		 3.86 3.72 3.58 3.34 3.58 3.56 3.29 3.08 3.12 3.45 3.44
Increase / (Decrease) in Invested Capital		 565 1,027 1,824 1,699 1,276 121 -195 -174 1,327 1,127 973
Enterprise Value (EV)		 13,359 14,891 15,116 16,376 18,137 18,344 18,750 17,843 23,044 20,518 27,288
Market Capitalization		 16,826 17,401 17,122 17,753 20,163 19,902 18,486 16,759 21,374 18,459 25,133
Book Value per Share		 $17.64 $17.08 $17.49 $17.38 $17.26 $15.80 $14.04 $14.81 $15.43 $13.81 $14.49
Tangible Book Value per Share		 $16.01 $15.45 $15.87 $15.76 $15.64 $14.16 $12.34 $12.96 $13.56 $11.86 $12.50
Total Capital		 18,522 18,198 18,461 18,416 17,049 16,059 12,103 11,878 12,882 12,262 13,028
Total Debt		 8,007 8,002 7,996 8,005 6,699 6,694 4,103 4,102 4,901 5,387 5,946
Total Long-Term Debt		 7,978 7,974 5,065 5,075 5,069 4,086 4,081 4,079 4,577 4,536 3,790
Net Debt		 -3,467 -2,510 -2,006 -1,377 -2,026 -1,558 264 1,084 1,670 2,059 2,155
Capital Expenditures (CapEx)		 708 583 494 517 460 501 635 678 859 438 560
Debt-free, Cash-free Net Working Capital (DFCFNWC)		 -9,746 -9,428 -8,433 -8,011 -8,097 -8,811 -8,617 -8,594 -8,183 -8,992 -8,421
Debt-free Net Working Capital (DFNWC)		 1,728 1,084 1,569 1,371 628 -559 -4,778 -5,576 -4,952 -5,664 -4,630
Net Working Capital (NWC)		 1,699 1,056 -1,362 -1,559 -1,002 -3,167 -4,800 -5,599 -5,276 -6,515 -6,786
Net Nonoperating Expense (NNE)		 -31 -44 -61 -38 -41 -7.10 -42 -26 -13 36 -16
Net Nonoperating Obligations (NNO)		 -3,467 -2,510 -2,006 -1,377 -2,026 -1,558 264 1,084 1,670 2,059 2,155
Total Depreciation and Amortization (D&A)		 415 408 404 438 407 396 399 394 371 398 402
Debt-free, Cash-free Net Working Capital to Revenue		 -37.35% -35.29% -31.20% -29.26% -29.46% -31.94% -31.37% -31.19% -29.16% -31.13% -28.00%
Debt-free Net Working Capital to Revenue		 6.62% 4.06% 5.80% 5.01% 2.29% -2.03% -17.39% -20.24% -17.65% -19.61% -15.40%
Net Working Capital to Revenue		 6.51% 3.95% -5.04% -5.69% -3.65% -11.48% -17.47% -20.32% -18.80% -22.56% -22.57%
Earnings Adjustments		 - - - - - - - - - - -
Adjusted Basic Earnings per Share		 ($0.42) ($0.39) $0.61 $0.11 $0.45 ($0.26) $0.40 $0.10 $0.58 $0.45 $0.48
Adjusted Weighted Average Basic Shares Outstanding		 596.66M 597M 599M 599M 592.66M 584M 538M 523M 491.32M 498M 489M
Adjusted Diluted Earnings per Share		 ($0.36) ($0.39) $0.58 $0.11 $0.46 ($0.26) $0.39 $0.10 $0.56 $0.45 $0.47
Adjusted Weighted Average Diluted Shares Outstanding		 596.66M 597M 643M 601M 592.66M 584M 541M 526M 491.32M 503M 493M
Adjusted Basic & Diluted Earnings per Share		 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Adjusted Weighted Average Basic & Diluted Shares Outstanding		 596.66M 598.46M 599.16M 599.74M 592.66M 569.87M 525.19M 517.16M 491.32M 488.77M 489.21M
Normalized Net Operating Profit after Tax (NOPAT)		 -283 -275 306 29 221 -156 171 28 310 263 217
Normalized NOPAT Margin		 -4.14% -4.35% 4.16% 0.42% 3.19% -2.43% 2.36% 0.40% 4.17% 3.63% 2.57%
Pre Tax Income Margin		 -4.18% -4.71% 6.50% 1.30% 4.75% -2.99% 3.87% 0.98% 5.47% 3.93% 3.63%
Debt Service Ratios		 - - - - - - - - - - -
EBIT to Interest Expense		 -6.77 -6.57 7.33 0.41 5.57 -6.89 9.69 2.55 13.47 7.24 6.25
NOPAT to Interest Expense		 -4.96 -4.74 5.56 0.53 4.52 -4.46 6.58 1.26 10.34 6.26 4.17
EBIT Less CapEx to Interest Expense		 -19.19 -16.62 -1.65 -9.17 -3.82 -21.20 -14.73 -28.27 -15.17 -3.19 -4.52
NOPAT Less CapEx to Interest Expense		 -17.38 -14.79 -3.43 -9.04 -4.87 -18.77 -17.84 -29.55 -18.29 -4.17 -6.60
Payout Ratios		 - - - - - - - - - - -
Dividend Payout Ratio		 92.04% 109.16% 557.14% -879.59% 92.47% 58.87% 108.14% 104.74% 90.48% 47.12% 44.21%
Augmented Payout Ratio		 92.04% 109.16% 557.14% -879.59% 146.24% 241.68% 744.27% 828.42% 668.71% 420.44% 229.39%

Financials Breakdown Chart

Key Financial Trends

Southwest Airlines is showing a meaningful turnaround in early 2026, with profitability and operating cash flow improving sharply versus the weak 2024 period. Q1 2026 revenue came in at $7.25 billion, up from $6.43 billion in Q1 2025 and $5.71 billion in Q1 2023, while the company posted $227 million of net income and $1.42 billion of operating cash flow. That said, the balance sheet still reflects a leveraged airline model, and recent quarters show Southwest is using a lot of cash for capital spending, debt, and share repurchases.

  • Revenue growth has re-accelerated. Q1 2026 revenue of $7.25 billion was up about 13% from Q1 2025 and well above Q1 2024.
  • Margins improved dramatically from last year’s weak quarter. Q1 2026 operating income was $330 million versus a $(223) million operating loss in Q1 2025.
  • Net income has recovered strongly. Southwest swung from a $(149) million loss in Q1 2025 to $227 million in Q1 2026.
  • Operating cash flow is healthy. Q1 2026 generated $1.42 billion in cash from operations, up from $860 million in Q1 2025 and $706 million in Q1 2024.
  • Liquidity remains solid. Cash and equivalents were $3.33 billion at the end of Q1 2026, which provides flexibility in a cyclical industry.
  • Equity improved year over year. Total common equity rose to $6.88 billion in Q1 2026 from $3.83 billion in Q1 2025.
  • Q1 2026 included large non-operating cash uses. Southwest repurchased $1.25 billion of stock and paid $93 million in dividends, which reduced free cash available for other uses.
  • Capital spending remains significant. The company spent $630 million on property and equipment in Q1 2026, keeping investing cash flow negative.
  • Debt levels are still notable for a cyclical business. Q1 2026 showed $4.54 billion of long-term debt and $851 million of short-term debt.
  • Costs remain high, even with better revenue. Q1 2026 operating costs were $4.91 billion, and other operating expenses were still elevated at $572 million.
  • Share count is not falling sharply enough to offset capital returns. Q1 2026 diluted shares were 503 million, and the company continues to use cash on buybacks rather than deleveraging aggressively.
  • Quarterly cash generation can be volatile. In 2025, operating cash flow swung from strong positive numbers to much weaker results in some periods, highlighting the sensitivity of the business to demand and cost pressure.
  • Balance sheet leverage is still a watch item. Total liabilities were $22.48 billion in Q1 2026 versus $6.88 billion of equity, so the company remains dependent on sustained profitability to keep improving its financial profile.

Bottom line: Southwest’s latest quarter points to a real earnings recovery, stronger operating cash flow, and improved liquidity. But investors should still watch fuel, labor, and capacity costs closely, along with how much cash management allocates to buybacks versus debt reduction.

07/27/26 12:06 PM ETAI Generated. May Contain Errors.

Southwest Airlines Financials - Frequently Asked Questions

According to the most recent income statement we have on file, Southwest Airlines' fiscal year ends in December. Their fiscal year 2025 ended on December 31, 2025.

Southwest Airlines' net income appears to be on a downward trend, with a most recent value of $441 million in 2025, falling from $2.18 billion in 2015. The previous period was $465 million in 2024. Check out Southwest Airlines' forecast to explore projected trends and price targets.

Southwest Airlines' total operating income in 2025 was $428 million, based on the following breakdown:
  • Total Gross Profit: $8.63 billion
  • Total Operating Expenses: $8.21 billion

Over the last 10 years, Southwest Airlines' total revenue changed from $19.82 billion in 2015 to $28.06 billion in 2025, a change of 41.6%.

Southwest Airlines' total liabilities were at $21.08 billion at the end of 2025, a 9.9% decrease from 2024, and a 51.1% increase since 2015.

In the past 10 years, Southwest Airlines' cash and equivalents has ranged from $1.50 billion in 2017 to $12.48 billion in 2021, and is currently $3.23 billion as of their latest financial filing in 2025.

Over the last 10 years, Southwest Airlines' book value per share changed from 11.31 in 2015 to 15.43 in 2025, a change of 36.4%.


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Financial statements for NYSE:LUV last updated on 7/23/2026 by MarketBeat.com Staff. New filings and market data are monitored continuously.
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