Southwest Airlines Company (LUV)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,350,000 | 10,515,000 | 10,687,000 | 10,414,000 | 8,876,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $10,350,000K)
= 0.00
The debt-to-capital ratio for Southwest Airlines Company has consistently remained at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt significantly in its capital structure during this period. A debt-to-capital ratio of 0.00 suggests that the company has been primarily relying on equity to finance its operations and growth, which could indicate a lower financial risk profile. It is essential to monitor this ratio over time to assess changes in the company's capital structure and financial risk management strategies.
Peer comparison
Dec 31, 2024