Southwest Airlines Company (LUV)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,515,000 | 10,687,000 | 10,414,000 | 8,876,000 | 9,832,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $10,515,000K)
= 0.00
The debt-to-capital ratio for Southwest Airlines Co has shown fluctuation over the past five years. In 2019, the ratio was at 0.21, indicating that a relatively low proportion of the company's capital structure was comprised of debt.
However, by 2021, the ratio had increased to 0.51, suggesting that Southwest had taken on more debt in relation to its overall capital. This increase in leverage could have been driven by strategic decisions related to financing options or investing in growth opportunities.
In the subsequent years, the ratio remained relatively stable at around 0.43, indicating a moderate level of debt usage in the company's capital structure. This consistency may suggest that Southwest has maintained a balanced approach to managing its debt levels.
Overall, the debt-to-capital ratio provides insights into Southwest Airlines Co's capital structure and financial leverage. Investors and stakeholders may monitor this ratio to assess the company's risk exposure and financial stability over time.
Peer comparison
Dec 31, 2023