Southwest Airlines Co. (LUV) Key Metrics
LUV valuation today
Trailing 12 months · as of October 18, 2026- Market cap
- $19.32B
- Enterprise value
- $23.68B
- P/E (TTM)
- 24.7 10-yr median 26.7
- Forward P/E
- 8.3
- PEG ratio
- 0.20
- Price / sales
- 0.6 10-yr median 1.3
- Price / book
- 2.9 10-yr median 2.8
- EV / EBITDA
- 8.5 10-yr median 7.6
- Dividend yield
- 1.82% $0.72 a year
- Beta
- 1.16
LUV key metrics, 2016–2025
Fiscal year ended December 31, 2025 · U.S. dollarsLUV valuation Price multiples at each fiscal year-end price.
LUV returns How much profit the business earns on the capital it uses.
LUV per-share figures Results divided by the shares outstanding at year-end.
LUV financial health Debt, liquidity and how easily interest is covered.
LUV efficiency & capital use Working capital cycle and where the cash goes.
LUV valuation history
LUV returns on capital
Net income (ROE, ROA) or after-tax operating income (ROIC) divided by the average of the opening and closing balance.
LUV debt vs cash
Debt includes short- and long-term borrowings and, where reported, lease liabilities.
LUV cash returned to shareholders
LUV price vs earnings per share
LUV key metrics
2016–2025| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Valuation | ||||||||||
| Market capitalization | $23.06B | $21.62B | $18.48B | $21.62B | $26.09B | $26.33B | $29.10B | $26.68B | $39.47B | $31.55B |
| Enterprise value | $25.81B | $20.95B | $16.21B | $18.80B | $22.87B | $25.20B | $29.02B | $26.37B | $39.86B | $31.63B |
| P/E ratio | 52.3 | 46.5 | 39.7 | 40.1 | 26.7 | — | 12.7 | 10.8 | 11.3 | 14.1 |
| Price / sales | 0.8 | 0.8 | 0.7 | 0.9 | 1.7 | 2.9 | 1.3 | 1.2 | 1.9 | 1.5 |
| Price / book | 2.9 | 2.1 | 1.8 | 2.0 | 2.5 | 3.0 | 3.0 | 2.7 | 3.8 | 3.7 |
| Price / free cash flow | — | — | — | — | 14.4 | — | 9.8 | 9.1 | 23.5 | 14.7 |
| Price / operating cash flow | 12.5 | 46.8 | 5.8 | 5.7 | 11.2 | — | 7.3 | 5.5 | 10.0 | 7.3 |
| EV / sales | 0.9 | 0.8 | 0.6 | 0.8 | 1.4 | 2.8 | 1.3 | 1.2 | 1.9 | 1.5 |
| EV / EBITDA | 11.5 | 8.5 | 6.8 | 7.9 | 7.6 | — | 6.8 | 5.9 | 8.8 | 6.7 |
| EV / free cash flow | — | — | — | — | 12.6 | — | 9.8 | 9.0 | 23.7 | 14.7 |
| Earnings yield | 1.9% | 2.2% | 2.5% | 2.5% | 3.7% | −11.7% | 7.9% | 9.2% | 8.8% | 7.1% |
| Free cash flow yield | −3.6% | −7.5% | −1.9% | −0.7% | 6.9% | −6.2% | 10.2% | 10.9% | 4.3% | 6.8% |
| Dividend yield | 1.7% | 2.0% | 2.3% | 1.0% | 0.0% | 0.7% | 1.3% | 1.2% | 0.7% | 0.7% |
| Shareholder yield (dividends + buybacks) | 12.8% | 3.1% | 2.6% | 1.0% | 0.0% | 2.4% | 8.2% | 8.7% | 4.7% | 6.3% |
| Share price at fiscal year-end | $41.33 | $33.62 | $28.88 | $33.67 | $42.84 | $46.61 | $53.98 | $46.48 | $65.45 | $49.84 |
| Per share | ||||||||||
| Revenue per share | $50.29 | $42.74 | $40.77 | $37.09 | $25.93 | $16.01 | $41.61 | $38.27 | $35.11 | $32.27 |
| Earnings per share | $0.79 | $0.72 | $0.73 | $0.84 | $1.60 | −$5.44 | $4.27 | $4.29 | $5.78 | $3.55 |
| Operating cash flow per share | $3.30 | $0.72 | $4.94 | $5.90 | $3.81 | −$1.99 | $7.40 | $8.52 | $6.52 | $6.78 |
| Free cash flow per share | −$1.49 | −$2.52 | −$0.56 | −$0.24 | $2.97 | −$2.91 | $5.49 | $5.08 | $2.79 | $3.39 |
| Cash per share | $5.79 | $13.57 | $17.93 | $19.15 | $25.46 | $23.60 | $7.55 | $6.43 | $5.43 | $5.22 |
| Book value per share | $14.30 | $16.10 | $16.43 | $16.65 | $17.10 | $15.71 | $18.24 | $17.17 | $17.30 | $13.33 |
| Tangible book value per share | $12.03 | $14.12 | $14.45 | $14.67 | $15.02 | $13.47 | $15.89 | $14.78 | $15.00 | $11.13 |
| Dividends per share | $0.72 | $0.67 | $0.67 | $0.33 | $0.00 | $0.33 | $0.69 | $0.58 | $0.45 | $0.35 |
| Capex per share | $4.79 | $3.23 | $5.50 | $6.15 | $0.84 | $0.91 | $1.91 | $3.44 | $3.73 | $3.39 |
| Debt per share | $10.72 | $12.53 | $14.38 | $14.76 | $20.17 | $21.59 | $7.41 | $5.88 | $6.08 | $5.35 |
| Shares outstanding | 558.0M | 643.0M | 640.0M | 642.0M | 609.0M | 565.0M | 539.0M | 574.0M | 603.0M | 633.0M |
| Change in shares outstanding | −13.2% | +0.5% | −0.3% | +5.4% | +7.8% | +4.8% | −6.1% | −4.8% | −4.7% | −5.4% |
| Returns & profitability | ||||||||||
| Return on equity (ROE) | 4.8% | 4.5% | 4.4% | 5.1% | 10.1% | −32.9% | 23.4% | 24.3% | 37.0% | 28.4% |
| Return on invested capital (ROIC) | 3.3% | 2.8% | 2.0% | 10.0% | 17.0% | −34.5% | 23.8% | 24.5% | 35.2% | 27.6% |
| Return on assets (ROA) | 1.4% | 1.3% | 1.3% | 1.5% | 2.8% | −10.2% | 8.8% | 9.6% | 14.4% | 10.1% |
| Return on tangible assets | 1.6% | 1.4% | 1.3% | 1.6% | 2.8% | −9.2% | 9.3% | 9.9% | 14.7% | 10.3% |
| Free cash flow margin | −3.0% | −5.9% | −1.4% | −0.7% | 11.5% | −18.1% | 13.2% | 13.3% | 7.9% | 10.5% |
| Income quality (OCF / net income) | 4.18 | 0.99 | 6.80 | 7.03 | 2.38 | — | 1.73 | 1.98 | 1.13 | 1.91 |
| Financial health | ||||||||||
| Total debt | $5.98B | $8.06B | $9.20B | $9.47B | $12.28B | $12.20B | $4.00B | $3.38B | $3.67B | $3.39B |
| Cash & short-term investments | $3.23B | $8.72B | $11.47B | $12.29B | $15.50B | $13.33B | $4.07B | $3.69B | $3.27B | $3.31B |
| Net debt | $2.75B | −$667.0M | −$2.27B | −$2.82B | −$3.22B | −$1.14B | −$76.0M | −$312.0M | $395.0M | $82.0M |
| Debt / equity | 0.75 | 0.78 | 0.87 | 0.89 | 1.18 | 1.37 | 0.41 | 0.34 | 0.35 | 0.40 |
| Debt / assets | 0.21 | 0.24 | 0.25 | 0.27 | 0.34 | 0.35 | 0.15 | 0.13 | 0.15 | 0.15 |
| Net debt / EBITDA | 1.23 | −0.27 | −0.95 | −1.18 | −1.06 | — | −0.02 | −0.07 | 0.09 | 0.02 |
| Current ratio | 0.52 | 0.92 | 1.14 | 1.43 | 1.97 | 2.02 | 0.67 | 0.64 | 0.70 | 0.66 |
| Quick ratio | 0.45 | 0.85 | 1.07 | 1.35 | 1.91 | 1.97 | 0.61 | 0.58 | 0.64 | 0.61 |
| Interest coverage | 3.8 | 1.5 | 0.9 | 3.4 | 4.0 | -12.2 | 36.1 | 34.5 | 52.4 | 47.0 |
| Working capital | −$5.28B | −$1.00B | $1.70B | $4.43B | $8.87B | $7.67B | −$2.98B | −$2.88B | −$2.09B | −$2.35B |
| Invested capital | $10.73B | $9.68B | $8.24B | $7.87B | $7.19B | $7.74B | $9.76B | $9.54B | $10.82B | $8.52B |
| Tangible asset value | $6.71B | $9.08B | $9.25B | $9.42B | $9.15B | $7.61B | $8.57B | $8.48B | $9.05B | $7.04B |
| Net current asset value | −$15.44B | −$12.13B | −$12.02B | −$9.87B | −$7.87B | −$10.54B | −$10.09B | −$11.36B | −$9.87B | −$10.35B |
| Graham number | $15.95 | $16.18 | $16.39 | $17.73 | $24.84 | — | $41.85 | $40.73 | $47.45 | $32.61 |
| Graham net-net per share | −$29.75 | −$20.91 | −$20.67 | −$17.47 | −$14.97 | −$20.04 | −$20.24 | −$20.98 | −$17.75 | −$17.32 |
| Capital allocation | ||||||||||
| Dividends paid | $399.0M | $430.0M | $428.0M | $214.0M | $0 | $188.0M | $372.0M | $332.0M | $274.0M | $222.0M |
| Share buybacks (net) | $2.55B | $250.0M | $48.0M | $0 | $0 | $451.0M | $2.00B | $2.00B | $1.60B | $1.75B |
| Dividend payout ratio | 90.5% | 92.5% | 92.0% | 39.7% | 0.0% | — | 16.2% | 13.5% | 7.9% | 9.9% |
| Dividends + buybacks / free cash flow | — | — | — | — | 0.0% | — | 80.1% | 79.9% | 111.5% | 91.9% |
| Capex / revenue | 9.5% | 7.6% | 13.5% | 16.6% | 3.2% | 5.7% | 4.6% | 9.0% | 10.6% | 10.5% |
| Capex / operating cash flow | 145.1% | 450.2% | 111.3% | 104.1% | 22.0% | — | 25.8% | 40.4% | 57.2% | 50.0% |
| Capex / depreciation | 1.71 | 1.26 | 2.31 | 2.92 | 0.40 | 0.41 | 0.84 | 1.65 | 1.85 | 1.76 |
| Stock-based compensation / revenue | — | — | 0.3% | 0.4% | 0.4% | −1.9% | 0.2% | 0.2% | 0.2% | 0.2% |
| SG&A / revenue | 50.6% | 51.4% | 15.3% | 15.7% | 15.1% | 21.3% | 13.5% | 13.0% | 13.4% | 13.2% |
| Efficiency | ||||||||||
| Days sales outstanding | 14.7 | 15.0 | 15.3 | 18.4 | 28.7 | 44.7 | 13.5 | 10.2 | 10.4 | 9.1 |
| Days of inventory on hand | 12.4 | 12.7 | 13.3 | 12.7 | 14.9 | 15.7 | 11.0 | 10.1 | 9.3 | 8.4 |
| Days payables outstanding | 5.7 | 4.8 | 4.5 | 4.1 | 4.2 | 6.9 | 6.3 | 5.2 | 4.0 | 17.2 |
| Cash conversion cycle (days) | 21.4 | 23.0 | 24.2 | 26.9 | 39.4 | 53.5 | 18.2 | 15.2 | 15.7 | 0.3 |
| Receivables turnover | 24.85 | 24.28 | 23.78 | 19.87 | 12.70 | 8.17 | 27.12 | 35.72 | 35.05 | 40.05 |
| Payables turnover | 63.65 | 76.24 | 80.69 | 88.05 | 87.45 | 52.71 | 58.01 | 70.86 | 91.93 | 21.21 |
| Inventory turnover | 29.42 | 28.65 | 27.39 | 28.73 | 24.55 | 23.20 | 33.22 | 36.11 | 39.34 | 43.41 |
| Asset turnover | 0.89 | 0.78 | 0.73 | 0.66 | 0.45 | 0.30 | 0.86 | 0.86 | 0.87 | 0.92 |
| Average receivables | $1.13B | $1.13B | $1.10B | $1.20B | $1.24B | $1.11B | $827.0M | $615.0M | $604.0M | $510.0M |
| Average payables | $364.0M | $302.0M | $271.0M | $216.5M | $133.5M | $207.5M | $283.5M | $224.5M | $162.0M | $663.0M |
| Average inventory | $787.5M | $803.5M | $798.5M | $663.5M | $475.5M | $471.5M | $495.0M | $440.5M | $378.5M | $324.0M |
| Intangibles / total assets | 4.4% | 3.8% | 3.5% | 3.6% | 3.5% | 3.7% | 4.9% | 5.2% | 5.5% | 6.0% |
Computed from LUV's annual financial statements (latest annual report filed February 5, 2026) and the closing share price on each fiscal year-end, adjusted for stock splits. Figures in U.S. dollars; data from EODHD. Averages use the opening and closing balance of each year.
LUV valuation and financial ratios
At the end of fiscal 2025 (December 31, 2025), Southwest Airlines traded at 52.3 times earnings, against a 10-year median of 26.7. Based on the latest twelve months, the trailing P/E is 24.7 and the forward P/E is 8.3. Southwest Airlines earned a return on equity of 4.8% and a return on invested capital of 3.3% in fiscal 2025. It ended the year with $6.0 billion of debt and $3.2 billion in cash and short-term investments, net debt of $2.8 billion. It returned $2.9 billion to shareholders: $399.0 million in dividends and $2.5 billion in share buybacks. The share count fell 11.8% from 633.0M to 558.0M over 9 years.
See the LUV income statement, the LUV chart for price history, or the LUV stock overview for the latest quote and news.
LUV key metrics FAQ
What is Southwest Airlines's P/E ratio?
Southwest Airlines's trailing P/E ratio is 24.7 based on the last twelve months of earnings (as of October 18, 2026), and its forward P/E is 8.3. At the end of fiscal 2025 it was 52.3, compared with a 10-year median of 26.7.
What is Southwest Airlines's EV/EBITDA?
Southwest Airlines's enterprise value was 11.5 times EBITDA at the end of fiscal 2025 (enterprise value $25.8 billion, EBITDA $2.2 billion); the current EV/EBITDA is 8.5.
What is Southwest Airlines's return on equity?
Southwest Airlines's return on equity (ROE) was 4.8% in fiscal 2025: net income of $441.0 million on average shareholders' equity of $9.2 billion.
What is Southwest Airlines's ROIC?
Southwest Airlines's return on invested capital was 3.3% in fiscal 2025, using after-tax operating income divided by average debt plus equity minus cash.
How much debt does Southwest Airlines have?
Southwest Airlines had total debt of $6.0 billion at the end of fiscal 2025, a debt-to-equity ratio of 0.75 and $2.8 billion of net debt (1.23 times EBITDA).
What is Southwest Airlines's dividend yield?
Southwest Airlines's forward dividend yield is 1.82%. Southwest Airlines paid $399.0 million in dividends in fiscal 2025 ($0.72 per share), a payout ratio of 90.5%.
Does Southwest Airlines buy back its shares?
Yes. Southwest Airlines spent $2.5 billion on net share repurchases in fiscal 2025 Shares outstanding changed −13.2% over the year, to 558.0M..
What is Southwest Airlines's free cash flow yield?
Southwest Airlines generated -$831.0 million of free cash flow in fiscal 2025, a free cash flow yield of −3.6% on its market value at year-end ($23.1 billion).
What is Southwest Airlines's current ratio?
Southwest Airlines's current ratio was 0.52 at the end of fiscal 2025: current assets were 0.52 times current liabilities.