Southwest Airlines Company (LUV)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,350,000K
= 0.00
The debt-to-equity ratio of Southwest Airlines Company has remained constant at 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not utilized any debt to finance its operations during this period and has relied solely on equity to fund its activities. A debt-to-equity ratio of 0.00 suggests that the company's financial structure is conservative and that it has a strong equity position relative to its debt. This may signify a lower level of financial risk for the company as it is not heavily leveraged. However, it is important to note that a very low debt-to-equity ratio may also indicate limited access to debt financing, which could potentially restrict the company's growth opportunities.
Peer comparison
Dec 31, 2024