Southwest Airlines Co.
LUVIndustrialsNASDAQAirlines
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Daily timeframeSouthwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. With a market capitalization of $23.50B, it sits in large-cap territory. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee.
Market Cap
$23.50B
Beta
1.12
P/E (TTM)
32.93
P/E (Fwd)
9.86
EPS (TTM)
$1.46
EPS (Fwd)
$4.88
ROE
10.1%
ROA
1.9%
Cash
$3.33B
Total Debt
$6.40B
Free CF
-$372.4M
52W Change
31.7%
Annual Financials
Cash vs Debt
Southwest Airlines Co. carries $6.40B in total debt against $3.33B in cash reserves — debt is roughly 1.9x the cash position. Managing this leverage effectively will be important for long-term financial stability. Free cash flow is running at -$372.4M, which bears watching. Negative free cash flow can be acceptable during heavy investment periods but needs to improve over time. Return on equity stands at 10.1%, which is decent for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. ROA of 1.9% is on the lower side, which is common in asset-heavy industries. Revenue has been uneven over recent years, ranging from $23.81B to $28.06B.
The company is burning cash at the operating level, which is not unusual for growth-phase companies but adds risk if it persists. No single metric tells the full story. Reviewing LUV's risk profile alongside its fundamentals and technical indicators provides a more complete picture.