Southwest Airlines Stock Z Score

LUV Stock

USD 29.73 0.35 1.19%

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out Southwest Airlines Piotroski F Score and Southwest Airlines Valuation analysis.

For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.

At this time, Southwest Airlines' Capital Surpluse is fairly stable compared to the past year. Net Working Capital is likely to climb to about 2.3 B in 2024, whereas Capital Stock is likely to drop slightly above 947.5 M in 2024. At this time, Southwest Airlines' Net Income is fairly stable compared to the past year. Income Tax Expense is likely to climb to about 254.6 M in 2024, whereas Operating Income is likely to drop slightly above 212.8 M in 2024.

Southwest Airlines Company Z Score Analysis

Southwest Airlines' Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Z Score

Sum Of

5 Factors

More About Z Score | All Equity Analysis

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

Southwest Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Southwest Airlines is extremely important. It helps to project a fair market value of Southwest Stock properly, considering its historical fundamentals such as Z Score. Since Southwest Airlines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Southwest Airlines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Southwest Airlines' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Short Term Investments	Net Tangible Assets	Good Will	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Accumulated Depreciation	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.72	-0.46	0.89	0.92	0.99	0.9	0.18	0.06	0.19	0.94	0.77	0.85	-0.86	0.74	0.77	0.77	0.69	0.76	0.83	-0.23	-0.92	0.69	-0.23	0.76	0.73	0.69	0.72
Total Stockholder Equity	0.72		0.0	0.77	0.62	0.64	0.49	0.45	0.2	0.64	0.61	0.86	0.42	-0.67	0.93	0.74	0.64	0.81	0.26	0.32	0.03	-0.72	0.7	0.19	0.42	0.28	0.32	0.26
Net Debt	-0.46	0.0		-0.38	-0.6	-0.54	-0.68	0.33	0.54	0.31	-0.63	0.05	-0.63	0.56	-0.12	-0.18	-0.53	0.2	-0.74	-0.78	0.33	0.51	-0.38	0.41	-0.73	-0.74	-0.64	-0.73
Retained Earnings	0.89	0.77	-0.38		0.89	0.84	0.7	0.36	0.0	0.29	0.88	0.64	0.61	-0.95	0.82	0.55	0.77	0.59	0.54	0.64	-0.07	-0.94	0.84	0.1	0.57	0.46	0.46	0.53
Net Receivables	0.92	0.62	-0.6	0.89		0.93	0.91	0.28	-0.1	0.1	0.9	0.58	0.84	-0.93	0.61	0.64	0.79	0.48	0.79	0.86	-0.24	-0.93	0.74	-0.11	0.83	0.76	0.75	0.72
Total Liab	0.99	0.64	-0.54	0.84	0.93		0.94	0.11	0.02	0.1	0.92	0.72	0.9	-0.86	0.67	0.76	0.78	0.62	0.84	0.89	-0.29	-0.91	0.66	-0.3	0.83	0.81	0.76	0.78
Total Current Assets	0.9	0.49	-0.68	0.7	0.91	0.94		0.0	-0.07	0.01	0.84	0.54	0.98	-0.81	0.47	0.76	0.76	0.4	0.95	0.96	-0.36	-0.82	0.6	-0.41	0.95	0.94	0.91	0.8
Short Term Debt	0.18	0.45	0.33	0.36	0.28	0.11	0.0		0.3	0.51	0.09	0.36	-0.1	-0.27	0.28	0.22	-0.01	0.42	-0.23	-0.18	0.16	-0.28	0.19	0.75	-0.08	-0.22	-0.07	-0.29
Intangible Assets	0.06	0.2	0.54	0.0	-0.1	0.02	-0.07	0.3		0.17	-0.06	0.32	-0.04	0.13	0.14	0.32	-0.11	0.38	-0.13	-0.14	-0.03	0.09	-0.08	0.08	-0.15	-0.13	-0.14	-0.11
Accounts Payable	0.19	0.64	0.31	0.29	0.1	0.1	0.01	0.51	0.17		0.09	0.45	-0.07	-0.2	0.44	0.47	0.05	0.49	-0.27	-0.23	0.23	-0.29	0.18	0.42	-0.08	-0.16	-0.01	-0.43
Current Deferred Revenue	0.94	0.61	-0.63	0.88	0.9	0.92	0.84	0.09	-0.06	0.09		0.63	0.75	-0.85	0.71	0.62	0.76	0.55	0.72	0.83	-0.2	-0.87	0.68	-0.25	0.71	0.67	0.56	0.79
Common Stock	0.77	0.86	0.05	0.64	0.58	0.72	0.54	0.36	0.32	0.45	0.63		0.49	-0.5	0.81	0.8	0.52	0.98	0.32	0.39	-0.06	-0.62	0.44	-0.04	0.42	0.34	0.32	0.39
Long Term Debt	0.85	0.42	-0.63	0.61	0.84	0.9	0.98	-0.1	-0.04	-0.07	0.75	0.49		-0.74	0.4	0.73	0.73	0.35	0.97	0.95	-0.42	-0.76	0.55	-0.47	0.95	0.97	0.94	0.79
Treasury Stock	-0.86	-0.67	0.56	-0.95	-0.93	-0.86	-0.81	-0.27	0.13	-0.2	-0.85	-0.5	-0.74		-0.7	-0.54	-0.85	-0.39	-0.69	-0.76	0.16	0.95	-0.87	-0.01	-0.74	-0.63	-0.65	-0.61
Property Plant Equipment	0.74	0.93	-0.12	0.82	0.61	0.67	0.47	0.28	0.14	0.44	0.71	0.81	0.4	-0.7		0.58	0.71	0.77	0.28	0.38	-0.02	-0.74	0.75	0.12	0.39	0.26	0.22	0.41
Short Term Investments	0.77	0.74	-0.18	0.55	0.64	0.76	0.76	0.22	0.32	0.47	0.62	0.8	0.73	-0.54	0.58		0.53	0.72	0.59	0.58	-0.13	-0.61	0.44	-0.24	0.67	0.66	0.67	0.43
Net Tangible Assets	0.77	0.64	-0.53	0.77	0.79	0.78	0.76	-0.01	-0.11	0.05	0.76	0.52	0.73	-0.85	0.71	0.53		0.37	0.71	0.77	-0.2	-0.78	0.83	-0.31	0.79	0.64	0.61	0.76
Good Will	0.69	0.81	0.2	0.59	0.48	0.62	0.4	0.42	0.38	0.49	0.55	0.98	0.35	-0.39	0.77	0.72	0.37		0.17	0.25	0.03	-0.54	0.34	0.05	0.24	0.18	0.16	0.25
Long Term Debt Total	0.76	0.26	-0.74	0.54	0.79	0.84	0.95	-0.23	-0.13	-0.27	0.72	0.32	0.97	-0.69	0.28	0.59	0.71	0.17		0.97	-0.46	-0.68	0.51	-0.55	0.95	0.97	0.92	0.86
Capital Surpluse	0.83	0.32	-0.78	0.64	0.86	0.89	0.96	-0.18	-0.14	-0.23	0.83	0.39	0.95	-0.76	0.38	0.58	0.77	0.25	0.97		-0.42	-0.75	0.56	-0.54	0.93	0.93	0.85	0.91
Deferred Long Term Liab	-0.23	0.03	0.33	-0.07	-0.24	-0.29	-0.36	0.16	-0.03	0.23	-0.2	-0.06	-0.42	0.16	-0.02	-0.13	-0.2	0.03	-0.46	-0.42		0.24	0.13	0.19	-0.42	-0.48	-0.44	-0.38
Accumulated Depreciation	-0.92	-0.72	0.51	-0.94	-0.93	-0.91	-0.82	-0.28	0.09	-0.29	-0.87	-0.62	-0.76	0.95	-0.74	-0.61	-0.78	-0.54	-0.68	-0.75	0.24		-0.78	-0.01	-0.72	-0.65	-0.67	-0.57
Long Term Investments	0.69	0.7	-0.38	0.84	0.74	0.66	0.6	0.19	-0.08	0.18	0.68	0.44	0.55	-0.87	0.75	0.44	0.83	0.34	0.51	0.56	0.13	-0.78		0.04	0.58	0.45	0.46	0.5
Short Long Term Debt	-0.23	0.19	0.41	0.1	-0.11	-0.3	-0.41	0.75	0.08	0.42	-0.25	-0.04	-0.47	-0.01	0.12	-0.24	-0.31	0.05	-0.55	-0.54	0.19	-0.01	0.04		-0.42	-0.54	-0.38	-0.6
Cash And Equivalents	0.76	0.42	-0.73	0.57	0.83	0.83	0.95	-0.08	-0.15	-0.08	0.71	0.42	0.95	-0.74	0.39	0.67	0.79	0.24	0.95	0.93	-0.42	-0.72	0.58	-0.42		0.95	0.94	0.81
Net Invested Capital	0.73	0.28	-0.74	0.46	0.76	0.81	0.94	-0.22	-0.13	-0.16	0.67	0.34	0.97	-0.63	0.26	0.66	0.64	0.18	0.97	0.93	-0.48	-0.65	0.45	-0.54	0.95		0.96	0.79
Net Working Capital	0.69	0.32	-0.64	0.46	0.75	0.76	0.91	-0.07	-0.14	-0.01	0.56	0.32	0.94	-0.65	0.22	0.67	0.61	0.16	0.92	0.85	-0.44	-0.67	0.46	-0.38	0.94	0.96		0.62
Capital Stock	0.72	0.26	-0.73	0.53	0.72	0.78	0.8	-0.29	-0.11	-0.43	0.79	0.39	0.79	-0.61	0.41	0.43	0.76	0.25	0.86	0.91	-0.38	-0.57	0.5	-0.6	0.81	0.79	0.62

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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

Competition

Predict Southwest Airlines

Based on the company's disclosures, Southwest Airlines has a Z Score of 0.0. This is 100.0% lower than that of the Passenger Airlines sector and 100.0% lower than that of the Industrials industry. The z score for all United States stocks is 100.0% higher than that of the company.

Southwest Airlines ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Southwest Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Southwest Airlines' managers, analysts, and investors.

Environment Score

Governance Score

Social Score

Southwest Airlines Institutional Holders

Institutional Holdings refers to the ownership stake in Southwest Airlines that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Southwest Airlines' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Southwest Airlines' value.

		Shares
American Century Companies Inc	2023-12-31	8.2 M
Wellington Management Company Llp	2023-12-31	7.9 M
Provident Trust Company	2023-12-31	7.6 M
Morgan Stanley - Brokerage Accounts	2023-12-31	7.2 M
Us Global Investors Inc	2023-12-31	6.2 M
Fmr Inc	2023-12-31	5.8 M
Dimensional Fund Advisors, Inc.	2023-12-31	5.3 M
Amvescap Plc.	2023-12-31	5.3 M
Northern Trust Corp	2023-12-31	4.8 M
Vanguard Group Inc	2023-12-31	65.4 M
Capital World Investors	2023-12-31	53.5 M

Southwest Fundamentals

	Return On Equity	0.0439
	Return On Asset	0.0153
	Profit Margin	0.02 %
	Operating Margin	0.04 %
	Current Valuation	15.46 B
	Shares Outstanding	598.25 M
	Shares Owned By Insiders	0.33 %
	Shares Owned By Institutions	81.58 %
	Number Of Shares Shorted	16.1 M
	Price To Earning	29.96 X
	Price To Book	1.57 X
	Price To Sales	0.63 X
	Revenue	26.09 B
	Gross Profit	5.98 B
	EBITDA	2.33 B
	Net Income	465 M
	Cash And Equivalents	9.49 B
	Cash Per Share	23.03 X
	Total Debt	9.2 B
	Debt To Equity	0.93 %
	Current Ratio	1.58 X
	Book Value Per Share	17.63 X
	Cash Flow From Operations	3.16 B
	Short Ratio	1.82 X
	Earnings Per Share	0.76 X
	Price To Earnings To Growth	0.56 X
	Target Price	30.5
	Number Of Employees	74.81 K
	Beta	1.14
	Market Capitalization	17.79 B
	Total Asset	36.49 B
	Retained Earnings	16.3 B
	Working Capital	1.7 B
	Current Asset	2.23 B
	Current Liabilities	1.43 B
	Annual Yield	0.02 %
	Five Year Return	1.03 %
	Net Asset	36.49 B
	Last Dividend Paid	0.72

About Southwest Airlines Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Southwest Airlines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Southwest Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Southwest Airlines based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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When determining whether Southwest Airlines is a strong investment it is important to analyze Southwest Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Southwest Airlines' future performance. For an informed investment choice regarding Southwest Stock, refer to the following important reports:

How To Invest In Southwest

Details

Is Southwest Stock a good investment?

Details

What is Southwest Airlines' Net Worth?

Details

Largest Passenger Airlines Companies

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Largest Transportation Companies

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Check out Southwest Airlines Piotroski F Score and Southwest Airlines Valuation analysis.

For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.

You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

Complementary Tools for Southwest Stock analysis

When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.

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Is Southwest Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southwest Airlines. If investors know Southwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southwest Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.30)

Dividend Share

0.72

Earnings Share

0.76

Revenue Per Share

43.85

Quarterly Revenue Growth

0.105

The market value of Southwest Airlines is measured differently than its book value, which is the value of Southwest that is recorded on the company's balance sheet. Investors also form their own opinion of Southwest Airlines' value that differs from its market value or its book value, called intrinsic value, which is Southwest Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southwest Airlines' market value can be influenced by many factors that don't directly affect Southwest Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Southwest Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Southwest Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southwest Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Southwest Airlines Stock Z Score

Southwest Airlines Company Z Score Analysis

Z Score

Sum Of

5 Factors

First Factor

1.2 * (

Working Capital

/

Total Assets )

Second Factor

1.4 * (

Retained Earnings

/

Total Assets )

Thrid Factor

3.3 * (

EBITAD

/

Total Assets )

Fouth Factor

0.6 * (

Market Value of Equity

/

Total Liabilities )

Fifth Factor

0.99 * (

Revenue

/

Total Assets )

Southwest Z Score Driver Correlations

Southwest Airlines ESG Sustainability

Southwest Airlines Institutional Holders

Southwest Fundamentals

About Southwest Airlines Fundamental Analysis

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Complementary Tools for Southwest Stock analysis

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