Southwest Airlines Co.Find Ratings Reports
SOUTHWEST AIRLINES's gross profit margin for the fourth quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, but still managed to outperform when compared to the average company in its subsector. SOUTHWEST AIRLINES has strong liquidity. Currently, the Quick Ratio is 1.93 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has decreased by 9.72% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||2013.0||5730.0|
|Net Income ($mil)||-908.0||513.0|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||13334.0||4072.0|
|Total Assets ($mil)||34588.0||25895.0|
|Total Debt ($mil)||12199.0||3996.0|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||-18.18||32.6|
|Return on Assets||-8.88||8.88|
|Return on Equity||-34.63||23.39|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||590.47||519.06|
|Div / share||0.0||0.18|
|Book value / share||15.03||18.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||8000733.0||8596765.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 4.19 indicates valuation on par with the S&P 500 average of 4.38 and a significant discount versus the subsector average of 15.56. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. The valuation analysis reveals that, SOUTHWEST AIRLINES seems to be trading at a premium to investment alternatives.
|LUV NM||Peers 14.08||LUV NM||Peers 9.32|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
LUV's P/E is negative making this valuation measure meaningless.
Neutral. 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's P/CF is negative making the measure meaningless.
|LUV 19.28||Peers 62.25||LUV NA||Peers 0.92|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
LUV's ratio is negative making this valuation measure meaningless.
Neutral. 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.
Ratio not available.
|LUV 4.19||Peers 15.56||LUV -224.06||Peers -449.29|
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.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
LUV is expected to have an earnings growth rate that significantly exceeds its peers.
|LUV 4.11||Peers 3.25||LUV -59.66||Peers -61.78|
Premium. 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 premium to its subsector.
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.