Southwest Airlines Company (LUV)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,350,000 | 10,411,000 | 10,465,000 | 10,196,000 | 10,515,000 | 11,054,000 | 10,789,000 | 10,302,000 | 10,687,000 | 10,924,000 | 11,120,000 | 10,417,000 | 10,414,000 | 10,250,000 | 9,688,000 | 9,093,000 | 8,876,000 | 9,769,000 | 10,878,000 | 9,075,000 |
| Debt-to-equity 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, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,350,000K
= 0.00
The debt-to-equity ratio for Southwest Airlines Company has consistently remained at 0.00 across all the reported quarters from March 31, 2020, to December 31, 2024. A ratio of 0.00 indicates that the company has no debt in relation to its equity during these periods. This could imply that Southwest Airlines relies more on equity financing rather than debt to fund its operations or that the company has a strong financial position with sufficient equity to cover any outstanding debt.
The stability of the debt-to-equity ratio at 0.00 over this long period suggests that Southwest Airlines has maintained a conservative capital structure with a low level of financial leverage. This can be viewed positively as lower debt levels typically reduce financial risk and potential distress in adverse economic conditions.
However, it's important to note that the debt-to-equity ratio is just one measure of financial health and should be considered alongside other financial metrics and factors to gain a comprehensive understanding of Southwest Airlines' overall financial position and performance.
Peer comparison
Dec 31, 2024