Analytical Lens: Exploring Southwest Airlines Co (LUV)’s Financial Story Through Ratios

The closing price of Southwest Airlines Co (NYSE: LUV) was $32.52 for the day, down -2.08% from the previous closing price of $33.21. In other words, the price has decreased by -$2.08 from its previous closing price. On the day, 15.89 million shares were traded. LUV stock price reached its highest trading level at $33.06 during the session, while it also had its lowest trading level at $32.125.

Ratios:

Our analysis of LUV’s different ratios will help us gain a deeper understanding of the company. For the most recent quarter (mrq), Quick Ratio is recorded 0.49 and its Current Ratio is at 0.56. In the meantime, Its Debt-to-Equity ratio is 0.67 whereas as Long-Term Debt/Eq ratio is at 0.62.

On July 15, 2025, Evercore ISI Downgraded its rating to In-line which previously was Outperform but kept the price unchanged to $40.

Deutsche Bank Upgraded its Hold to Buy on May 29, 2025, while the target price for the stock was maintained at $40.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Jun 06 ’25 when Green Ryan C. bought 20,910 shares for $32.94 per share.

SARETSKY GREGG A bought 3,670 shares of LUV for $100,169 on Apr 30 ’25. The Director now owns 14,881 shares after completing the transaction at $27.29 per share. On Apr 29 ’25, another insider, Breber Pierre R, who serves as the Director of the company, bought 10,000 shares for $26.89 each. As a result, the insider paid 268,877 and bolstered with 44,000 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, LUV now has a Market Capitalization of 17079113728 and an Enterprise Value of 18581104640. As of this moment, Southwest’s Price-to-Earnings (P/E) ratio for their current fiscal year is 48.90, and their Forward P/E ratio for the next fiscal year is 13.70. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.96. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.62 while its Price-to-Book (P/B) ratio in mrq is 2.13. Its current Enterprise Value per Revenue stands at 0.676 whereas that against EBITDA is 11.254.

Stock Price History:

The Beta on a monthly basis for LUV is 1.25, which has changed by 0.2026627 over the last 52 weeks, in comparison to a change of 0.17535925 over the same period for the S&P500. Over the past 52 weeks, LUV has reached a high of $37.96, while it has fallen to a 52-week low of $23.58. The 50-Day Moving Average of the stock is -3.05%, while the 200-Day Moving Average is calculated to be 2.73%.

Shares Statistics:

LUV traded an average of 12.29M shares per day over the past three months and 15164630 shares per day over the past ten days. A total of 525.19M shares are outstanding, with a floating share count of 519.38M. Insiders hold about 1.11% of the company’s shares, while institutions hold 101.20% stake in the company. Shares short for LUV as of 1752537600 were 35454669 with a Short Ratio of 2.89, compared to 1749772800 on 47503847. Therefore, it implies a Short% of Shares Outstanding of 35454669 and a Short% of Float of 7.090000000000001.

Dividends & Splits

With its trailing 12-month dividend rate of 0.72, LUV has a forward annual dividend rate of 0.72. Against a Trailing Annual Dividend Yield of 0.02168022The stock’s 5-year Average Dividend Yield is 1.03. The current Payout Ratio is 95.45% for LUV, which recently paid a dividend on 2025-06-18 with an ex-dividend date of 2025-06-18. Stock splits for the company last occurred on 2001-02-16 when the company split stock in a 3:2 ratio.

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