Southwest Airlines Company (LUV)

Debt-to-assets ratio

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Long-term debt US$ in thousands
Total assets US$ in thousands 36,487,000 36,980,000 36,519,000 35,546,000 35,369,000 35,946,000 38,302,000 37,262,000 36,320,000 37,110,000 38,206,000 35,493,000 34,588,000 35,605,000 35,596,000 26,885,000 25,895,000 26,467,000 26,374,000 26,459,000
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 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 been relatively stable over the past eight quarters, ranging from 0.22 to 0.29. This ratio indicates that, on average, between 22% to 29% of the company's assets are funded by debt.

A lower debt-to-assets ratio suggests that a company relies less on debt financing and has a higher proportion of assets financed by equity. In Southwest Airlines Co's case, the consistent range of the ratio implies that the company has maintained a conservative approach to debt management, balancing its capital structure effectively.

Overall, Southwest Airlines Co's debt-to-assets ratio indicates a moderate level of financial leverage, suggesting a prudent level of risk management in its capital structure.


Peer comparison

Dec 31, 2023