Southwest Airlines Company
Find Ratings ReportsSOUTHWEST AIRLINES's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. SOUTHWEST AIRLINES has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.60% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 6823.0 | 6582.0 |
EBITDA ($mil) | 592.0 | 392.0 |
EBIT ($mil) | 177.0 | 25.0 |
Net Income ($mil) | -252.0 | -220.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 11474.0 | 12292.0 |
Total Assets ($mil) | 36487.0 | 35369.0 |
Total Debt ($mil) | 9200.0 | 9431.0 |
Equity ($mil) | 10515.0 | 10687.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 23.68 | 27.1 |
EBITDA Margin | 8.67 | 5.95 |
Operating Margin | 2.59 | 0.38 |
Sales Turnover | 0.72 | 0.68 |
Return on Assets | 1.27 | 1.52 |
Return on Equity | 4.42 | 5.04 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.14 | 1.43 |
Debt/Capital | 0.47 | 0.47 |
Interest Expense | 66.0 | 68.0 |
Interest Coverage | 2.68 | 0.37 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 596.51 | 594.0 |
Div / share | 0.18 | 0.0 |
EPS | -0.42 | -0.37 |
Book value / share | 17.63 | 17.99 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 8318058.0 | 8262165.0 |
HOLD. SOUTHWEST AIRLINES's P/E ratio indicates a significant premium compared to an average of 15.79 for the Air Transportation subsector and a significant premium compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.59 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 2.87. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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LUV 40.16 | Peers 15.79 | LUV 5.30 | Peers 5.52 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. LUV is trading at a significant premium to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. LUV is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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LUV 11.71 | Peers 9.15 | LUV 0.33 | Peers 0.28 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. LUV is trading at a significant premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. LUV trades at a premium to its peers. |
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Price/Book |
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Earnings Growth |
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LUV 1.59 | Peers 2.87 | LUV -12.50 | Peers 835.16 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. LUV is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, LUV is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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LUV 0.64 | Peers 84.66 | LUV 7.70 | Peers 20.37 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. LUV is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. LUV significantly trails its peers on the basis of sales growth. |
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