Score Your Stock

US stock · figures in US dollars · scored on full-year results

Southwest Airlines Southwest Airlines Company Common Stock

LUV · Industrials · Airlines
Bottom 39% of scored stocks
OkayBottom 39% of scored stocks

Southwest Airlines scores 49/100 on fundamentals: in the bottom 39% of 503 scored S&P 500 stocks. Its strongest area is Risk (75/100); its weakest is Cash & Dividends (25/100).

Best
Risk 75
Weakest
Cash 25

An expensively priced stock, but cash & dividends needs attention.

What looks good
What to watch
Mkt capUS$ 20.8b#397 of 503 in the S&P 500EPSUS$ 2.05P/E20.8×✓ vs sector median 25.5×P/B3×✓ vs sector median 6×Div yield2%✓ Top 43% in the S&P 50052w range · 51% of range29.2655.11
as of 31 Oct 2026

Nearby peers

Ranks #50 of 76 in Industrials by score

#1Emcor75#48Honeywell Aerospace50#49Old Dominion50
#50Southwest Airlines49
#51Otis Worldwide49#52Caterpillar48

One-Minute Summary

Why Southwest Airlines scores 49

An expensively priced stock, but cash & dividends needs attention.

What looks good
What to watch

Business Strength

60
Why 60?
Pillar score: (1 + 1 + 2 + 0 + 2) = 6 of 10 points → 60
Return on Equity (ROE)14%Okay4-Year Revenue Growth+7%/yrOkay4-Year Profit Growth+31%/yrStrongNet Profit Margin3%WeakQuarterly Momentum+9%Strong
Show 3 charts

Net Profit & Equity, with ROE

Net Profit ↑ +126.5%Equity ↓ -30.3%ROE % 14.4%
Net ProfitEquityROE %
465m465m441m1.1b10.5b10.3b8.0b7.3b202320242025TTM4.4%4.5%5.5%14.4%

Revenue & Net Profit, with Net Margin

Revenue ↑ +20.9%Net Profit ↑ +126.5%Net Margin % 3.3%
RevenueNet ProfitNet Margin %
26.1b27.5b28.1b31.5b465m465m441m1.1b202320242025TTM1.8%1.7%1.6%3.3%

Sales grew about 20.9% over 4 years: customers keep spending more with this company.

Profit climbed about 126.5% over 4 years: the business keeps more money as it grows.

Recent Quarters: Revenue & Net Profit (the last 8 quarters, scored)

Revenue ↑ +22.7%Net Profit ↑ +247.8%Net Margin % 2.8%
RevenueNet ProfitNet Margin %
6.9b6.9b6.4b7.2b6.9b7.4b7.2b8.4b67m262m-149m213m54m323m227m233mQ3'24Q4'24Q1'25Q2'25Q3'25Q4'25Q1'26Q2'261%3.8%-2.3%2.9%0.8%4.3%3.1%2.8%
▼▲▼▼▼▲▲▲

Sales grew about 22.7% over the last 8 quarters: customers keep spending more with this company.

The company made a loss in at least one of the last 8 quarters: the bars below zero are losses, not profits.

Why 50?
Pillar score: (1 + 0 + 2) = 3 of 6 points → 50
Debt-to-Equity0.9×OkayCurrent Ratio0.5×WeakInterest Coverage8.5×Strong
Show 2 charts

Debt vs Equity, with D/E ratio

Total Debt ↓ -25.3%Equity ↓ -30.3%D/E 0.9×
Total DebtEquityD/E
9.2b8.1b6.0b6.9b10.5b10.3b8.0b7.3b202320242025TTM0.9×0.8×0.7×0.9×

Borrowings fell about 25.3% over 4 years: the company is steadily getting safer.

Short-term assets vs bills, with Current Ratio

Current Assets ↓ -53.4%Current Liabilities ↑ +12.1%Current Ratio 0.5×
Current AssetsCurrent LiabilitiesCurrent Ratio
14.0b11.3b5.6b6.5b12.3b12.3b10.9b13.7b202320242025TTM1.1×0.9×0.5×0.5×
Why 25?
Pillar score: (0 + 1 + 0 + 1) = 2 of 8 points → 25
Dividend Quality2%Weak
Payout ratio: 34%
Operating Cash FlowPositive but bumpyOkayFree Cash FlowNegative recentlyWeakCash & Cash EquivalentsPartly healthyOkay
Show 3 charts

Operating vs Free Cash Flow

Operating CF ↓ -12.9%Free CF ↓ -26.4%
Operating CFFree CF
3.2b462m1.8b2.8b-356m-1.6b-831m-450m202320242025TTM

Cash keeps coming in, though unevenly: fine, but worth keeping an eye on.

Cash vs Total Debt

Cash ↓ -61%Short-Term Debt ↑ +7,324.1%Total Debt ↓ -25.3%
CashShort-Term DebtTotal Debt
9.3b7.5b3.2b3.6b29m1.6b324m2.2b9.2b8.1b6.0b6.9b202320242025TTM

Dividends per Share, with Yield

DPS (cents) → +0%Yield % 1.7%
DPS (cents)Yield %
181818181818090727220222023202420250%3.1%2.5%1.7%

Dividends were cut during this period: payouts here are not guaranteed pocket money.

Why 33?
Pillar score: (0 + 0 + 2) = 2 of 6 points → 33
P/E Ratio20.8×WeakP/B Ratio3×WeakPEG Ratio0.7Strong
Show chart

Share Price: Weekly Closes (not part of the score)

US$ 52.65US$ 41.27US$ 29.90Oct '25Feb '26Jun '26Oct '26

The share price is up about 41.9% over the past year.

Why 75?
Pillar score: (2 + 2 + 2 + 1 + 2 + 0) = 9 of 12 points → 75
Earnings ConsistencySteadyStrongDebt Trend (4yr)FallingStrongShare Count Trend (4yr)-5%/yrStrongInventory vs Sales (4yr)+0.8 pp/yr vs salesOkayAsset Turnover Trend (4yr)+44.5%StrongQuarterly ConsistencyLoss in 1 of 8 quartersWeak
Show chart

Revenue vs Inventory, with Inventory % of Revenue

Revenue ↑ +20.9%Inventory ↑ +23.5%Inv. % of Rev. 3.2%
RevenueInventoryInv. % of Rev.
26.1b27.5b28.1b31.5b807m800m775m997m202320242025TTM3.1%2.9%2.8%3.2%
Ranks #50 of 76 in Industrials by score

Sector peers

#1Emcor75#48Honeywell Aerospace50#49Old Dominion50
#50Southwest Airlines (you)49
#51Otis Worldwide49#52Caterpillar48

Full Financial History

Every reported figure behind the score, year by year. Download it, or check it against the company's own annual report.

Financial YearRevenueNet ProfitOperating Cash FlowFree Cash FlowCapExCashTotal DebtShort-Term DebtEquityCurrent AssetsCurrent LiabilitiesTotal AssetsTotal LiabilitiesInventoryDividendsReturn on Equity (ROE)Net Profit MarginDebt-to-EquityCurrent RatioInterest CoverageDividend Payout RatioDiv yieldP/E RatioP/B Ratio
2026US$ 31.5bUS$ 1.1bUS$ 2.8bUS$ -450.0mUS$ -3.2bUS$ 3.6bUS$ 6.9bUS$ 2.2bUS$ 7.3bUS$ 6.5bUS$ 13.7bUS$ 30.5bUS$ 23.2bUS$ 997.0m-14%3%0.9×0.5×8.5×34%---
2025US$ 28.1bUS$ 441.0mUS$ 1.8bUS$ -831.0mUS$ -2.7bUS$ 3.2bUS$ 6.0bUS$ 324.0mUS$ 8.0bUS$ 5.6bUS$ 10.9bUS$ 29.1bUS$ 21.1bUS$ 775.0mUS$ 72.0m6%2%0.8×0.5×6.0×90%2%49.0×2.7×
2024US$ 27.5bUS$ 465.0mUS$ 462.0mUS$ -1.6bUS$ -2.1bUS$ 7.5bUS$ 8.1bUS$ 1.6bUS$ 10.3bUS$ 11.3bUS$ 12.3bUS$ 33.8bUS$ 23.4bUS$ 800.0mUS$ 72.0m4%2%0.8×0.9×3.8×92%2%41.7×1.9×
2023US$ 26.1bUS$ 465.0mUS$ 3.2bUS$ -356.0mUS$ -3.5bUS$ 9.3bUS$ 9.2bUS$ 29.0mUS$ 10.5bUS$ 14.0bUS$ 12.3bUS$ 36.5bUS$ 26.0bUS$ 807.0mUS$ 90.0m4%2%0.9×1.1×3.7×92%3%35.0×1.6×