Skip to content

Southwest Airlines LUV Ratios & Valuation

TTM Q1 '26TTM Q4 '25TTM Q3 '25TTM Q2 '25TTM Q1 '25
Profitability
Operating margin7.2%+1.6pp5.6%+0.4pp5.2%
Net margin7.2%+0.8pp6.4%-0.1pp6.5%
EBITDA margin30%+1.1pp28.9%-0.1pp29%
Free cash flow margin-6.6%+0.7pp-7.4%+2.8pp-10.2%+5.8pp-16%+5.2pp-21.2%+0.5pp
Returns
Return on equity23.3%+4.5pp18.8%+0.4pp18.4%
Return on assets6.4%+1.0pp5.4%+0.1pp5.3%
Return on invested capital15.5%+4.3pp11.2%+0.7pp10.6%
Efficiency
Asset turnover3.5×+0.1×3.4×+0.1×3.3×+0.1×3.2×+0.1×3.1×+0.1×
Liquidity
Current ratio-0.3×2.3×-0.4×2.7×-0.4×3.1×-0.3×3.5×-0.3×
Quick ratio-0.3×2.3×-0.4×2.7×-0.4×3.1×-0.3×3.5×-0.3×
Cash ratio1.1×-0.3×1.5×-0.3×1.8×-0.4×2.1×-0.3×2.4×-0.1×
Leverage
Debt-to-equity3.1×+0.1×-0.1×3.1×-0.2×3.3×-0.2×3.5×0.0×
Debt-to-assets0.8×0.0×0.8×-0.1×0.9×-0.1×-0.1×0.0×
Net debt / EBITDA+1.3×3.7×+0.4×3.3×
Interest coverage11.5×+3.5×+1.3×6.7×
Valuation
Market capitalization$74.74B-1.9%$76.19B+1.6%$74.98B-1.3%$75.97B+1.4%$74.95B+3.4%
Enterprise value$85.2B+2.1%$83.44B+2.6%$81.34B+1.0%$80.56B+2.4%$78.65B+2.0%
Price / earnings161.6×-13.9×175.5×+5.0×170.4×
Price / sales2.7×-0.1×2.8×0.0×2.7×0.0×2.8×0.0×2.7×+0.1×
Price / book9.8×+0.6×9.2×+0.7×8.5×+0.5×+0.6×7.4×+0.4×
EV / EBITDA41×-0.8×41.8×+1.0×40.8×
EV / sales0.0×+0.1×0.0×2.9×+0.1×2.9×0.0×
Free cash flow yield-9.6%+0.8pp-10.4%+4.0pp-14.4%+8.9pp-23.3%+8.3pp-31.6%+1.1pp
Earnings yield10.9%+1.7pp9.2%-0.2pp9.5%
Dividend yield8.7%+0.5pp8.2%-0.3pp8.5%0.0pp8.5%-0.2pp8.7%-0.8pp

Chart any of these lines over time, or line them up against competitors.

Compare these in charts →

Questions, answered.

Where do Southwest Airlines's ratios come from?
Every ratio is computed from Southwest Airlines's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.