Southwest Airlines Stock Current Ratio

LUV Stock

USD 30.28 0.35 1.17%

Southwest Airlines fundamentals help investors to digest information that contributes to Southwest Airlines' financial success or failures. It also enables traders to predict the movement of Southwest Stock. The fundamental analysis module provides a way to measure Southwest Airlines' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Southwest Airlines stock.

		Last Reported	Projected for Next Year
	Current Ratio	0.92	1.18

Current Ratio is likely to climb to 1.18 in 2025.

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Southwest Airlines Company Current Ratio Analysis

Southwest Airlines' Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.

Current Ratio

Current Asset

Current Liabilities

More About Current Ratio | All Equity Analysis

Current Southwest Airlines Current Ratio

1.58 X

Most of Southwest Airlines' fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Southwest Airlines is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Southwest Current Ratio Driver Correlations

Understanding the fundamental principles of building solid financial models for Southwest Airlines is extremely important. It helps to project a fair market value of Southwest Stock properly, considering its historical fundamentals such as Current Ratio. Since Southwest Airlines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Southwest Airlines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Southwest Airlines' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Short Term Investments	Net Tangible Assets	Good Will	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Accumulated Depreciation	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.88	0.05	0.71	0.72	0.8	0.76	0.13	0.08	0.21	0.51	0.73	0.8	-0.74	0.74	0.8	0.65	0.64	0.48	0.49	-0.13	-0.81	0.57	-0.25	0.63	0.56	0.68	0.24
Total Stockholder Equity	0.88		-0.02	0.78	0.66	0.71	0.57	0.27	0.17	0.33	0.57	0.86	0.55	-0.69	0.93	0.64	0.66	0.8	0.3	0.36	0.01	-0.74	0.68	0.0	0.46	0.31	0.36	0.28
Net Debt	0.05	-0.02		-0.43	-0.56	-0.51	-0.49	-0.71	0.3	0.57	-0.78	-0.15	-0.25	0.48	-0.23	0.11	-0.53	-0.04	-0.7	-0.78	0.31	0.43	-0.52	-0.77	-0.59	-0.55	-0.18	-0.91
Retained Earnings	0.71	0.78	-0.43		0.89	0.85	0.7	0.61	-0.03	0.12	0.85	0.65	0.54	-0.95	0.83	0.46	0.78	0.59	0.56	0.66	-0.09	-0.94	0.85	0.4	0.59	0.48	0.38	0.55
Net Receivables	0.72	0.66	-0.56	0.89		0.93	0.9	0.67	-0.12	-0.08	0.87	0.59	0.76	-0.94	0.63	0.54	0.81	0.48	0.8	0.86	-0.26	-0.94	0.79	0.35	0.84	0.76	0.65	0.71
Total Liab	0.8	0.71	-0.51	0.85	0.93		0.94	0.57	-0.01	-0.09	0.88	0.74	0.83	-0.88	0.7	0.67	0.8	0.62	0.83	0.88	-0.3	-0.93	0.72	0.26	0.85	0.81	0.68	0.72
Total Current Assets	0.76	0.57	-0.49	0.7	0.9	0.94		0.47	-0.09	-0.23	0.77	0.55	0.94	-0.82	0.49	0.7	0.76	0.4	0.92	0.91	-0.36	-0.84	0.64	0.11	0.95	0.94	0.87	0.71
Short Term Debt	0.13	0.27	-0.71	0.61	0.67	0.57	0.47		0.08	0.04	0.7	0.46	0.23	-0.55	0.38	0.13	0.45	0.43	0.54	0.62	-0.19	-0.52	0.5	0.85	0.47	0.37	0.17	0.72
Intangible Assets	0.08	0.17	0.3	-0.03	-0.12	-0.01	-0.09	0.08		0.27	-0.09	0.3	-0.04	0.15	0.1	0.32	-0.15	0.36	-0.15	-0.17	-0.02	0.11	-0.12	-0.03	-0.18	-0.15	-0.13	-0.15
Accounts Payable	0.21	0.33	0.57	0.12	-0.08	-0.09	-0.23	0.04	0.27		-0.24	0.33	-0.21	0.08	0.19	0.28	-0.37	0.48	-0.48	-0.48	0.35	0.0	-0.18	-0.08	-0.42	-0.41	-0.16	-0.55
Current Deferred Revenue	0.51	0.57	-0.78	0.85	0.87	0.88	0.77	0.7	-0.09	-0.24		0.6	0.54	-0.83	0.68	0.38	0.77	0.51	0.74	0.86	-0.24	-0.83	0.76	0.57	0.72	0.65	0.36	0.84
Common Stock	0.73	0.86	-0.15	0.65	0.59	0.74	0.55	0.46	0.3	0.33	0.6		0.49	-0.51	0.82	0.66	0.53	0.97	0.35	0.41	-0.07	-0.63	0.48	0.19	0.44	0.33	0.29	0.4
Long Term Debt	0.8	0.55	-0.25	0.54	0.76	0.83	0.94	0.23	-0.04	-0.21	0.54	0.49		-0.7	0.42	0.74	0.69	0.32	0.84	0.78	-0.39	-0.73	0.53	-0.17	0.91	0.91	0.95	0.54
Treasury Stock	-0.74	-0.69	0.48	-0.95	-0.94	-0.88	-0.82	-0.55	0.15	0.08	-0.83	-0.51	-0.7		-0.72	-0.45	-0.86	-0.39	-0.71	-0.78	0.18	0.96	-0.87	-0.29	-0.76	-0.65	-0.58	-0.62
Property Plant Equipment	0.74	0.93	-0.23	0.83	0.63	0.7	0.49	0.38	0.1	0.19	0.68	0.82	0.42	-0.72		0.41	0.72	0.76	0.31	0.42	-0.04	-0.76	0.76	0.24	0.43	0.25	0.19	0.42
Short Term Investments	0.8	0.64	0.11	0.46	0.54	0.67	0.7	0.13	0.32	0.28	0.38	0.66	0.74	-0.45	0.41		0.32	0.62	0.45	0.42	-0.07	-0.55	0.25	-0.29	0.51	0.59	0.67	0.15
Net Tangible Assets	0.65	0.66	-0.53	0.78	0.81	0.8	0.76	0.45	-0.15	-0.37	0.77	0.53	0.69	-0.86	0.72	0.32		0.37	0.73	0.79	-0.22	-0.8	0.88	0.22	0.81	0.62	0.52	0.75
Good Will	0.64	0.8	-0.04	0.59	0.48	0.62	0.4	0.43	0.36	0.48	0.51	0.97	0.32	-0.39	0.76	0.62	0.37		0.18	0.26	0.02	-0.53	0.36	0.2	0.25	0.17	0.13	0.26
Long Term Debt Total	0.48	0.3	-0.7	0.56	0.8	0.83	0.92	0.54	-0.15	-0.48	0.74	0.35	0.84	-0.71	0.31	0.45	0.73	0.18		0.97	-0.47	-0.7	0.61	0.29	0.95	0.96	0.79	0.86
Capital Surpluse	0.49	0.36	-0.78	0.66	0.86	0.88	0.91	0.62	-0.17	-0.48	0.86	0.41	0.78	-0.78	0.42	0.42	0.79	0.26	0.97		-0.43	-0.77	0.67	0.39	0.93	0.91	0.69	0.91
Deferred Long Term Liab	-0.13	0.01	0.31	-0.09	-0.26	-0.3	-0.36	-0.19	-0.02	0.35	-0.24	-0.07	-0.39	0.18	-0.04	-0.07	-0.22	0.02	-0.47	-0.43		0.26	0.04	-0.13	-0.43	-0.48	-0.39	-0.39
Accumulated Depreciation	-0.81	-0.74	0.43	-0.94	-0.94	-0.93	-0.84	-0.52	0.11	0.0	-0.83	-0.63	-0.73	0.96	-0.76	-0.55	-0.8	-0.53	-0.7	-0.77	0.26		-0.79	-0.25	-0.74	-0.68	-0.61	-0.59
Long Term Investments	0.57	0.68	-0.52	0.85	0.79	0.72	0.64	0.5	-0.12	-0.18	0.76	0.48	0.53	-0.87	0.76	0.25	0.88	0.36	0.61	0.67	0.04	-0.79		0.37	0.65	0.48	0.37	0.66
Short Long Term Debt	-0.25	0.0	-0.77	0.4	0.35	0.26	0.11	0.85	-0.03	-0.08	0.57	0.19	-0.17	-0.29	0.24	-0.29	0.22	0.2	0.29	0.39	-0.13	-0.25	0.37		0.16	0.08	-0.23	0.62
Cash And Equivalents	0.63	0.46	-0.59	0.59	0.84	0.85	0.95	0.47	-0.18	-0.42	0.72	0.44	0.91	-0.76	0.43	0.51	0.81	0.25	0.95	0.93	-0.43	-0.74	0.65	0.16		0.93	0.85	0.81
Net Invested Capital	0.56	0.31	-0.55	0.48	0.76	0.81	0.94	0.37	-0.15	-0.41	0.65	0.33	0.91	-0.65	0.25	0.59	0.62	0.17	0.96	0.91	-0.48	-0.68	0.48	0.08	0.93		0.88	0.72
Net Working Capital	0.68	0.36	-0.18	0.38	0.65	0.68	0.87	0.17	-0.13	-0.16	0.36	0.29	0.95	-0.58	0.19	0.67	0.52	0.13	0.79	0.69	-0.39	-0.61	0.37	-0.23	0.85	0.88		0.42
Capital Stock	0.24	0.28	-0.91	0.55	0.71	0.72	0.71	0.72	-0.15	-0.55	0.84	0.4	0.54	-0.62	0.42	0.15	0.75	0.26	0.86	0.91	-0.39	-0.59	0.66	0.62	0.81	0.72	0.42

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Southwest Current Ratio Historical Pattern

Today, most investors in Southwest Airlines Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Southwest Airlines' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current ratio growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Southwest Airlines current ratio as a starting point in their analysis.

Southwest Airlines Current Ratio

Timeline

Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Competition

Predict Southwest Airlines

Current Ratio Over Time

Southwest Price To Sales Ratio

Price To Sales Ratio

1.06

At this time, Southwest Airlines' Price To Sales Ratio is fairly stable compared to the past year.

In accordance with the recently published financial statements, Southwest Airlines has a Current Ratio of 1.58 times. This is 23.3% lower than that of the Passenger Airlines sector and 139.39% higher than that of the Industrials industry. The current ratio for all United States stocks is 26.85% higher than that of the company.

Southwest Current Ratio Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Southwest Airlines' direct or indirect competition against its Current Ratio to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Southwest Airlines could also be used in its relative valuation, which is a method of valuing Southwest Airlines by comparing valuation metrics of similar companies.

Southwest Airlines is currently under evaluation in current ratio category among its peers.

Southwest Airlines ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Southwest Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Southwest Airlines' managers, analysts, and investors.

Environmental

Governance

Social

Southwest Fundamentals

	Return On Equity	0.0446
	Return On Asset	0.0051
	Profit Margin	0.02 %
	Operating Margin	0.04 %
	Current Valuation	17.28 B
	Shares Outstanding	592.66 M
	Shares Owned By Insiders	0.56 %
	Shares Owned By Institutions	92.92 %
	Number Of Shares Shorted	34.68 M
	Price To Earning	29.96 X
	Price To Book	1.73 X
	Price To Sales	0.65 X
	Revenue	27.48 B
	Gross Profit	5.86 B
	EBITDA	2.5 B
	Net Income	465 M
	Cash And Equivalents	9.49 B
	Cash Per Share	23.03 X
	Total Debt	8.06 B
	Debt To Equity	0.93 %
	Current Ratio	1.58 X
	Book Value Per Share	17.44 X
	Cash Flow From Operations	462 M
	Short Ratio	4.18 X
	Earnings Per Share	0.76 X
	Price To Earnings To Growth	0.42 X
	Target Price	32.0
	Number Of Employees	72.45 K
	Beta	1.14
	Market Capitalization	17.95 B
	Total Asset	21.86 B
	Retained Earnings	16.33 B
	Working Capital	(1 B)
	Current Asset	2.23 B
	Current Liabilities	1.43 B
	Annual Yield	0.02 %
	Five Year Return	1.03 %
	Net Asset	21.86 B
	Last Dividend Paid	0.72

About Southwest Airlines Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Southwest Airlines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Southwest Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Southwest Airlines based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Southwest Stock Analysis

When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.

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