Southwest Airlines Co.
LUVIndustrialsNASDAQAirlines
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Daily timeframePart of the industrials sector, Southwest Airlines Co. (LUV) is listed under Airlines. The $21.17B market capitalization puts LUV squarely in large-cap range for its industry. 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
$21.17B
Beta
1.11
P/E (TTM)
28.87
P/E (Fwd)
9.57
EPS (TTM)
$1.50
EPS (Fwd)
$4.53
ROE
10.1%
ROA
1.9%
Cash
$3.33B
Total Debt
$6.40B
Free CF
-$372.4M
52W Change
29.8%
Annual Financials
Cash vs Debt
On the balance sheet, LUV has $3.33B in cash with $6.40B in obligations. The ability to service this debt comfortably depends on continued operational cash generation. 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. ROE of 10.1% points to decent capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. 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.
Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. No single metric tells the full story. Reviewing LUV's risk profile alongside its fundamentals and technical indicators provides a more complete picture.