Southwest Airlines Co. cash flow to debt ratio of 30.80% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Southwest Airlines Co.'s free cash flow has increased -48.64% from $-1.62B last year to $-831.00M, signaling increasing performance

Southwest Airlines Co.'s debt to equity ratio is 0.97, which means that the company's assets are unhealthy financed, signaling financial risk.

Southwest Airlines Co.'s debt has increased relative to shareholder equity from 0.78 last year to 0.97 today, signaling weakened financials

Southwest Airlines Co. has a net debt to EBITDA ratio of 1.23x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Southwest Airlines Co. earns at least as much interest as it pays. Interest obligations are fully covered.

Southwest Airlines Co.'s profit margin has increased (64.50%) in the last year from 1.69% to 2.78%, signaling increasing performance

Southwest Airlines Co.'s short-term liabilities of $10.92B exceed its short-term assets of $5.64B, signaling financial risk

Southwest Airlines Co.'s return on assets of 2.78% is lower than the 5.00% threshold, indicating inefficient asset utilization

Southwest Airlines Co.'s return on equity of 11.27%, is lower than 15.00%, indicating bad performance

Southwest Airlines Co.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Southwest Airlines Co. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Southwest Airlines Co. has negative free cash flow, indicating the company is burning cash rather than generating it

Southwest Airlines Co. has negative free cash flow, indicating cash burn

Southwest Airlines Co.'s yearly earnings has decreased 5.16% since last year from $465.00M to $441.00M, signaling decreasing performance

Southwest Airlines Co.'s yearly revenue has increased 2.11% since last year from $27.48B to $28.06B, signaling increasing performance

ROIC 4.24% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Southwest Airlines Co.'s 3-year revenue CAGR of 5.63% is positive, indicating growing revenue over the past 3 years

Southwest Airlines Co. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Southwest Airlines Co. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Southwest Airlines Co. has insufficient data to evaluate this check.

Southwest Airlines Co. has an earnings yield of 3.77%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Southwest Airlines Co. is overvalued relative to its fair value price of 26.26 based on EBITDA multiple model

Southwest Airlines Co. has an EV/EBITDA ratio of 11.05x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Southwest Airlines Co. is overvalued relative to its fair value price of 13.44 based on Earnings Fair Value model

Southwest Airlines Co. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Southwest Airlines Co. has a price-to-book ratio of 3.13x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Southwest Airlines Co. has a price-to-sales ratio of 0.74x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue