Southwest Airlines Company (LUV)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,515,000K
= 0.00
The debt-to-equity ratio of Southwest Airlines Co has exhibited fluctuations over the past five years. This ratio indicates the proportion of the company's capital that is financed through debt compared to equity.
In 2019, Southwest Airlines had a relatively low debt-to-equity ratio of 0.27, implying that a significant portion of its capital was derived from equity rather than debt. However, by 2020 and 2021, the ratio increased substantially to 1.16 and 1.03 respectively, suggesting a higher reliance on debt for financing compared to equity during those years.
Subsequently, in 2022 and 2023, Southwest Airlines Co maintained a consistent debt-to-equity ratio of 0.76, indicating a more balanced capital structure with a moderate level of debt relative to equity.
It is important to note that changes in the debt-to-equity ratio can be influenced by various factors, including borrowing decisions, profitability, and overall financial performance. Further analysis and consideration of the company's financial strategy and industry trends would be necessary to fully understand the implications of these fluctuations in Southwest Airlines Co's debt-to-equity ratio.
Peer comparison
Dec 31, 2023