Southwest Airlines Company (LUV)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	36,487,000	36,980,000	36,519,000	35,546,000	35,369,000	35,946,000	38,302,000	37,262,000	36,320,000	37,110,000	38,206,000	35,493,000	34,588,000	35,605,000	35,596,000	26,885,000	25,895,000	26,467,000	26,374,000	26,459,000
Total stockholders’ equity	US$ in thousands	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	9,832,000	9,931,000	9,940,000	9,791,000
Financial leverage ratio		3.47	3.35	3.38	3.45	3.31	3.29	3.44	3.58	3.49	3.62	3.94	3.90	3.90	3.64	3.27	2.96	2.63	2.67	2.65	2.70

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,487,000K ÷ $10,515,000K
= 3.47

The financial leverage ratio of Southwest Airlines Co has been fluctuating over the past eight quarters, ranging from 3.29 to 3.58. The ratio measures the company's level of debt relative to its equity, indicating the extent to which the company relies on debt financing. A higher ratio suggests higher financial risk due to increased debt levels.

Southwest Airlines Co's financial leverage ratio has shown a general upward trend in the most recent quarters, reaching a peak of 3.58 in Q1 2022 before decreasing slightly. This indicates an increasing reliance on debt financing compared to equity during this period.

Overall, Southwest Airlines Co's financial leverage ratio has remained relatively high, exceeding 3.0 in all quarters analyzed. Investors and stakeholders may monitor this ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively.