Southwest Airlines Company (LUV)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 36,487,000 | 35,369,000 | 36,320,000 | 34,588,000 | 25,895,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $36,487,000K
= 0.00
The debt-to-assets ratio of Southwest Airlines Co has shown a decreasing trend over the past five years. The ratio decreased from 0.30 in both 2021 and 2020 to 0.22 in 2023, indicating a reduction in the proportion of debt relative to total assets. This suggests that Southwest Airlines Co has been able to reduce its reliance on debt to finance its operations and investments. Additionally, the ratio was significantly lower in 2019 at 0.10, indicating a relatively stronger financial position with lower debt levels compared to the recent years. Overall, the decreasing trend in the debt-to-assets ratio reflects a positive development in the company's financial leverage and may signify improved financial stability and risk management practices.
Peer comparison
Dec 31, 2023