Southwest Net Profit Margin vs Gross Profit Margin Analysis
LUV Stock | USD 26.41 0.74 2.88% |
Southwest Airlines financial indicator trend analysis is much more than just breaking down Southwest Airlines prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Southwest Airlines is a good investment. Please check the relationship between Southwest Airlines Net Profit Margin and its Gross Profit Margin accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.
Net Profit Margin vs Gross Profit Margin
Net Profit Margin vs Gross Profit Margin Correlation Analysis
The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Southwest Airlines Net Profit Margin account and Gross Profit Margin. At this time, the significance of the direction appears to have strong relationship.
The correlation between Southwest Airlines' Net Profit Margin and Gross Profit Margin is 0.74. Overlapping area represents the amount of variation of Net Profit Margin that can explain the historical movement of Gross Profit Margin in the same time period over historical financial statements of Southwest Airlines, assuming nothing else is changed. The correlation between historical values of Southwest Airlines' Net Profit Margin and Gross Profit Margin is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Profit Margin of Southwest Airlines are associated (or correlated) with its Gross Profit Margin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit Margin has no effect on the direction of Net Profit Margin i.e., Southwest Airlines' Net Profit Margin and Gross Profit Margin go up and down completely randomly.
Correlation Coefficient | 0.74 |
Relationship Direction | Positive |
Relationship Strength | Significant |
Net Profit Margin
The percentage of revenue left after all expenses have been deducted from sales. The measure is calculated by dividing net profit by revenue.Gross Profit Margin
Most indicators from Southwest Airlines' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Southwest Airlines current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.At this time, Southwest Airlines' Enterprise Value Over EBITDA is fairly stable compared to the past year. Enterprise Value Multiple is likely to climb to 7.70 in 2024, whereas Tax Provision is likely to drop slightly above 130.2 M in 2024.
2021 | 2022 | 2023 | 2024 (projected) | Total Operating Expenses | 2.4B | 3.7B | 4.0B | 4.0B | Cost Of Revenue | 11.7B | 19.1B | 21.9B | 23.0B |
Southwest Airlines fundamental ratios Correlations
Click cells to compare fundamentals
Southwest Airlines Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Southwest Airlines fundamental ratios Accounts
2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
Total Assets | 25.9B | 34.6B | 36.3B | 35.4B | 36.5B | 38.3B | |
Short Long Term Debt Total | 4.0B | 12.2B | 12.3B | 9.4B | 9.2B | 9.7B | |
Total Current Liabilities | 9.0B | 7.5B | 9.2B | 10.4B | 12.3B | 12.9B | |
Total Stockholder Equity | 9.8B | 8.9B | 10.4B | 10.7B | 10.5B | 5.4B | |
Property Plant And Equipment Net | 18.4B | 17.7B | 16.4B | 18.7B | 20.6B | 21.6B | |
Net Debt | 1.4B | 1.1B | (199M) | (61M) | (88M) | (83.6M) | |
Retained Earnings | 17.9B | 14.8B | 15.8B | 16.3B | 16.3B | 17.1B | |
Cash | 2.5B | 11.1B | 12.5B | 9.5B | 9.3B | 9.8B | |
Non Current Assets Total | 19.9B | 19.4B | 18.3B | 20.6B | 22.5B | 23.7B | |
Non Currrent Assets Other | 577M | 722M | 882M | (1.4B) | (1.7B) | (1.6B) | |
Cash And Short Term Investments | 4.1B | 13.3B | 15.5B | 12.3B | 11.5B | 12.0B | |
Net Receivables | 1.1B | 1.1B | 1.4B | 1.0B | 1.1B | 1.2B | |
Common Stock Shares Outstanding | 539M | 565M | 609M | 642M | 640M | 578.0M | |
Liabilities And Stockholders Equity | 25.9B | 34.6B | 36.3B | 35.4B | 36.5B | 38.3B | |
Non Current Liabilities Total | 7.1B | 18.2B | 16.7B | 14.3B | 13.7B | 14.4B | |
Inventory | 529M | 414M | 537M | 790M | 807M | 847.4M | |
Other Current Assets | 287M | 295M | 638M | 686M | 520M | 295.3M | |
Other Stockholder Equity | (8.9B) | (6.7B) | (6.6B) | (6.8B) | (6.7B) | (6.3B) | |
Total Liab | 16.1B | 25.7B | 25.9B | 24.7B | 26.0B | 27.3B | |
Total Current Assets | 6.0B | 15.2B | 18.0B | 14.8B | 14.0B | 14.7B | |
Short Term Debt | 1.2B | 526M | 692M | 267M | 237M | 278.2M | |
Intangible Assets | 413M | 399M | 296M | 295M | 340.4M | 308.2M | |
Accounts Payable | 1.6B | 931M | 1.3B | 2.0B | 265M | 251.8M | |
Current Deferred Revenue | 4.5B | 3.8B | 5.6B | 6.1B | 6.6B | 6.9B | |
Property Plant And Equipment Gross | 18.4B | 17.7B | 29.2B | 32.4B | 35.0B | 36.8B | |
Accumulated Other Comprehensive Income | (61M) | (105M) | 388M | 344M | 395.6M | 415.4M | |
Other Liab | 4.3B | 6.5B | 5.2B | 5.1B | 5.9B | 6.2B | |
Other Assets | 529M | 1.0B | 882M | 855M | 983.3M | 618.2M | |
Long Term Debt | 1.8B | 10.1B | 10.3B | 8.0B | 8.0B | 8.4B | |
Treasury Stock | (10.4B) | (10.9B) | (10.9B) | (10.8B) | (9.8B) | (9.3B) | |
Property Plant Equipment | 17.0B | 15.8B | 16.4B | 18.7B | 21.5B | 13.8B | |
Short Term Investments | 1.5B | 2.3B | 3.0B | 2.8B | 2.2B | 1.8B | |
Net Tangible Assets | 9.8B | 12.8B | 9.4B | 13.0B | 15.0B | 8.9B | |
Retained Earnings Total Equity | 17.9B | 14.8B | 15.8B | 16.3B | 18.7B | 11.2B | |
Long Term Debt Total | 1.8B | 10.1B | 10.3B | 8.0B | 9.3B | 9.7B | |
Capital Surpluse | 1.6B | 4.2B | 4.2B | 4.0B | 4.6B | 4.9B |
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Try AI Portfolio ArchitectCheck out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment. For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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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 0.64 | Revenue Per Share 44.841 | Quarterly Revenue Growth 0.109 |
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.