Last 48 quarters of trend data · Industrials · Airlines, Airports & Air Services
Quarterly valuation ratios — annualised for comparability. YoY Δ shows same-quarter-prior-year change.
Southwest Airlines Co.'s quarterly P/E stands at 20.9x. EV/EBITDA has compressed 74.4% YoY to 7.2x, reflecting multiple compression or accelerating EBITDA.
| Metric | TTM | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 | Q2 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| P/E Ratio → | 60.72 | 20.87 | 16.94 | 79.77 | 20.79 | — | 20.01 | 67.34 | 12.33 | — | — | 22.56 | 8.46 |
| — | — | -15.4% | +18.5% | +68.6% | — | — | +198.5% | +45.8% | — | — | +25.8% | +12.4% | |
| P/S Ratio | 0.84 | 0.65 | 0.72 | 0.60 | 0.61 | 0.76 | 0.78 | 0.65 | 0.63 | 0.69 | 0.63 | 0.66 | 0.82 |
| — | -14.5% | -7.0% | -6.8% | -3.2% | +10.8% | +23.3% | -2.4% | -23.9% | -18.7% | -22.1% | -16.2% | -3.5% | |
| P/B Ratio | 3.35 | 2.75 | 2.70 | 2.16 | 2.19 | 2.09 | 2.08 | 1.71 | 1.76 | 1.71 | 1.64 | 1.57 | 2.14 |
| — | +31.3% | +29.6% | +26.2% | +24.8% | +22.5% | +27.2% | +9.1% | -18.0% | -8.9% | -12.5% | -13.1% | +4.0% | |
| P/FCF | — | 6.00 | — | — | — | 13.66 | 336.73 | — | — | — | — | — | 11.98 |
| — | -56.1% | — | — | — | — | — | — | — | — | — | — | +91.3% | |
| EV / EBITDA | 13.23 | 7.20 | 7.97 | 11.15 | 7.77 | 28.14 | 8.07 | 9.66 | 6.04 | 303.67 | 389.19 | 8.69 | 5.01 |
| — | -74.4% | -1.2% | +15.4% | +28.7% | -90.7% | -97.9% | +11.2% | +20.4% | +383.6% | — | +31.0% | +37.1% | |
| EV / EBIT | 61.46 | 15.88 | 13.86 | 53.17 | 15.86 | — | 14.69 | 32.17 | 9.08 | — | — | 14.44 | 6.16 |
| — | — | -5.7% | +65.3% | +74.7% | — | — | +122.7% | +47.4% | — | — | +27.6% | +26.9% |
Quarterly margins and returns. Watch for margin compression across consecutive quarters.
Southwest Airlines Co.'s operating margin was 4.6% in Q1 2026, down 0.7 pp QoQ and up 8.0 pp YoY. The trailing four-quarter average of 3.4% lags the current quarter, suggesting the recent improvement is above-trend. Gross margin contracted 25.5% YoY, suggesting cost inflation or competitive pricing pressure.
| Metric | TTM | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 | Q2 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.4% | 10.0% | 20.3% | 16.7% | 18.7% | 13.5% | 17.7% | 16.3% | 20.3% | 9.9% | 10.7% | 16.5% | 24.9% |
| — | -25.5% | +14.6% | +2.5% | -7.5% | +36.6% | +66.3% | -1.3% | -18.5% | -15.6% | -34.7% | -15.6% | -14.1% | |
| Operating Margin | 1.5% | 4.6% | 5.3% | 0.5% | 3.1% | -3.5% | 4.0% | 0.6% | 5.4% | -6.2% | -5.9% | 1.8% | 11.3% |
| — | +231.2% | +31.0% | -8.9% | -42.6% | +44.1% | +167.7% | -69.2% | -52.1% | -24.8% | +5.1% | -71.8% | -34.4% | |
| Net Margin | 1.6% | 3.1% | 4.3% | 0.8% | 2.9% | -2.3% | 3.8% | 1.0% | 5.0% | -3.6% | -3.7% | 3.0% | 9.7% |
| — | +235.1% | +15.2% | -20.3% | -41.1% | +36.5% | +202.0% | -67.0% | -48.6% | -31.0% | -3.6% | -33.6% | -14.1% |
| Metric | TTM | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 | Q2 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.8% | 3.1% | 4.1% | 0.7% | 2.5% | -1.5% | 2.5% | 0.6% | 3.6% | -2.2% | -2.3% | 1.8% | 6.5% |
| — | +302.2% | +63.1% | +6.7% | -30.9% | +32.2% | +207.6% | -63.7% | -45.1% | -47.2% | -14.8% | -29.7% | -8.2% | |
| ROA | 1.4% | 0.8% | 1.1% | 0.2% | 0.7% | -0.4% | 0.8% | 0.2% | 1.0% | -0.6% | -0.7% | 0.5% | 1.9% |
| — | +274.7% | +48.0% | -0.5% | -32.9% | +30.2% | +210.9% | -63.8% | -45.9% | -42.1% | -11.2% | -29.6% | -5.8% | |
| ROIC | 3.0% | 2.5% | 2.8% | 0.3% | 1.8% | -1.7% | 1.9% | 0.3% | 2.7% | -2.8% | -2.9% | 0.8% | 5.4% |
| — | +251.4% | +47.7% | +3.3% | -33.6% | +39.6% | +166.8% | -68.5% | -50.3% | -42.1% | -5.0% | -72.2% | -40.1% |
Quarterly solvency trend — watch for debt spikes or covenant pressure.
Southwest Airlines Co.'s Debt/EBITDA ratio is 7.4x, down from 7.8x last quarter — elevated, raising questions about debt serviceability. The current ratio has weakened 38.1% YoY to 0.48x, tightening the short-term liquidity position. Debt/Equity has risen for 4 consecutive quarters, indicating increasing financial leverage that investors should watch closely.
| Metric | TTM | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 | Q2 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.75 | 0.78 | 0.75 | 0.68 | 0.67 | 0.85 | 0.78 | 0.87 | 0.87 | 0.90 | 0.87 | 0.84 | 0.86 |
| — | -8.2% | -3.7% | -22.6% | -23.3% | -5.0% | -11.0% | +4.1% | +0.7% | -1.3% | -1.3% | -9.4% | -19.9% | |
| Debt / EBITDA | 3.01 | 7.40 | 7.85 | 12.26 | 8.55 | 46.21 | 11.76 | 19.11 | 11.36 | 610.73 | 836.36 | 18.85 | 8.03 |
| — | -84.0% | -33.3% | -35.9% | -24.8% | -92.4% | -98.6% | +1.4% | +41.5% | +427.6% | — | +36.1% | -0.8% | |
| Current Ratio | 0.52 | 0.48 | 0.52 | 0.49 | 0.56 | 0.77 | 0.92 | 0.88 | 0.90 | 1.09 | 1.14 | 1.21 | 1.25 |
| — | -38.1% | -43.7% | -44.5% | -38.1% | -28.9% | -19.3% | -26.8% | -27.7% | -13.8% | -20.2% | -23.4% | -24.5% | |
| Quick Ratio | 0.45 | 0.41 | 0.45 | 0.42 | 0.49 | 0.72 | 0.85 | 0.83 | 0.85 | 1.02 | 1.07 | 1.14 | 1.19 |
| — | -42.5% | -47.7% | -49.4% | -42.4% | -29.8% | -20.5% | -27.6% | -28.7% | -14.6% | -20.6% | -24.0% | -25.3% | |
| Interest Coverage | 5.98 | 7.86 | 14.13 | 4.09 | 11.77 | -4.49 | 8.00 | 2.65 | 9.69 | -4.14 | -3.93 | 5.02 | 15.77 |
| — | — | — | — | — | — | — | — | — | — | — | — | — |
Includes 30+ ratios · 48 years · Updated daily
Deep dive into LUV consensus models and risk factors.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LUV stock.
Southwest Airlines Co.'s current P/E is 60.7x. The average P/E over the last 4 quarters is 34.6x. Quarterly P/E ratios can vary due to seasonal revenue patterns and one-time charges.
Southwest Airlines Co.'s current operating margin is 1.5%. Margins have been expanding over recent quarters. Quarterly margins are particularly useful for identifying trend inflections that annual data smooths over.
Quarterly financial ratios reveal short-term trend shifts — margin compression, debt spikes, or valuation re-ratings — that annual figures smooth over. They're essential for active investors tracking Southwest Airlines Co.'s business trajectory between earnings reports.