SOUTHWEST AIRLINES CO financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data SOUTHWEST AIRLINES CO files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	20,425	21,171	21,965	22,428	9,048	15,790	23,814	26,091	27,483	28,063
Operating expenses	16,767	17,739	18,759	19,471
Operating income	3,522	3,407	3,206	2,957	-3,816	1,721	1,017	224	321	428
Interest expense	122	114	131	118			340	259	249	167
Interest income	24	35	69	90	32	13	217	583	497	205
Other non-operating income	-72	-142	-42	0	-440	-396	-289	409	277	135
Pre-tax income	3,450	3,265	3,164	2,957	-4,256	1,325	728	633	598	563
Income tax	1,267	-92	699	657	-1,182	348	189	168	133	122
Net income	2,183	3,357	2,465	2,300	-3,074	977	539	465	465	441
EBITDA	4,743	4,625	4,407	4,176	-2,561	2,993	2,368	1,746	1,978	1,988
EPS, basic	3.48	5.58	4.30	4.28	-5.44	1.65	0.91	0.78	0.78	0.82
EPS, diluted	3.45	5.57	4.29	4.27	-5.44	1.61	0.87	0.76	0.76	0.79
Shares, basic (weighted)	627	601	573	538	565	592	593	595	598	540
Shares, diluted (weighted)	633	603	574	539	565	609	642	640	643	558
Dividend per share	0.38	0.48	0.61	0.70	0.18		0.18	0.72	0.72	0.72

Balance sheet

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Cash and equivalents	1,680	1,495	1,854	2,548	11,063	12,480	9,492	9,288	7,509	3,231
Short-term investments	1,625	1,778	1,835	1,524	2,271	3,024	2,800	2,186	1,216	0
Receivables					46	58	117	104	47	98
Other current assets	310	460	310	287	295	638	686	520	639	490
Total current assets	4,498	4,815	5,028	5,974	15,173	18,036	14,808	13,955	11,274	5,645
Property, plant and equipment	17,044	18,539	19,525	17,025	15,831	14,842	17,342	19,375	19,056	20,245
Lease right-of-use assets			0	1,349	1,892	1,590	1,394	1,223	1,369	1,089
Goodwill	970	970	970	970	970	970	970	970	970	970
Intangible assets	426	413	400	296	295	295	296	296	300	296
Other non-current assets	774	786	720	577	722	882	855	964	1,081	1,112
Total assets	23,286	25,110	26,243	25,895	34,588	36,320	35,369	36,487	33,750	29,061
Accounts payable	1,178	1,320	1,416	1,574	931	1,282	2,004	1,862	1,818	1,991
Accrued liabilities	1,985	1,700	1,749	1,749	2,259	1,624	2,043	3,606	2,206	2,349
Deferred revenue				4,457	3,790	5,566	6,064	6,551	6,294	5,945
Short-term debt	566	348	606	819	220	453	42	29	1,630	324
Total current liabilities	6,844	6,863	7,905	8,952	7,506	9,164	10,378	12,256	12,276	10,921
Long-term debt	2,821	3,320	2,771	1,846	10,111	10,274	8,046	7,978	5,069	4,577
Lease liabilities			0	978	1,562	1,315	1,118	985	1,031	768
Other non-current liabilities	728	707	650	706	1,247	1,224	969	981	909	1,306
Total liabilities	15,502	15,469	16,390	16,063	25,712	25,906	24,682	25,972	23,400	21,080
Total debt	3,410	3,693	3,396	2,678	10,381	10,727	8,097	8,012	6,697	4,929
Paid-in capital	1,410	1,451	1,510	1,581	4,191	4,224	4,037	4,153	4,199	4,322
Retained earnings	11,418	13,832	15,967	17,945	14,777	15,774	16,261	16,297	16,332	16,388
Treasury stock	-4,872	-6,462	-8,452	-10,441	-10,875	-10,860	-10,843	-10,823	-11,044	-13,593
Other comprehensive income	-323	12	20	-61	-105	388	344	0	-25	-24
Shareholders' equity	7,784	9,641	9,853	9,832	8,876	10,414	10,687	10,515	10,350	7,981
Total equity	7,784	9,641	9,853	9,832	8,876	10,414	10,687	10,515	10,350	7,981
Total liabilities and equity	23,286	25,110	26,243	25,895	34,588	36,320	35,369	36,487	33,750	29,061

Cash flow statement

	FY2016	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	2,183	3,357	2,465	2,300	-3,074	977	539	465	465	441
Depreciation and amortization	1,221	1,218	1,201	1,219	1,255	1,272	1,351	1,522	1,657	1,560
Stock-based compensation	33	37	46	55	17	58	84	86	45	99
Deferred income tax	420	-1,068	301	-55	-716	-20	228	159	132	122
Change in payables	221	233	545	298	231	38	936	1,386	-1,363	218
Cash from operations	4,293	3,929	4,893	3,987	-1,127	2,322	3,790	3,164	462	1,842
Capital expenditures	-2,038	-2,123	-1,922	-1,027	-515	-505	-3,924	-3,520	-2,054	-2,673
Purchases of investments	-2,388	-2,380	-2,409	-2,122	-5,080	-5,824	-5,592	-6,970	-5,014	-470
Cash from investing	-2,272	-2,408	-2,038	-303	-16	-1,264	-3,746	-2,932	-261	-1,429
Debt issued	515	600	0	0	5,622	0	0	0	0	1,500
Stock issued			0	0	2,294	0	0
Share buybacks	-1,750	-1,600	-2,000	-2,000	-451	0	0	0	-250	-2,550
Dividends paid	-222	-274	-332	-372	-188	0	0	-428	-430	-399
Cash from financing	-1,924	-1,706	-2,496	-2,990	9,658	359	-3,032	-436	-1,980	-4,691
Net change in cash	97	-185	359	694	8,515	1,417	-2,988	-204	-1,779	-4,278
Free cash flow	2,255	1,806	2,971	2,960	-1,642	1,817	-134	-356	-1,592	-831
Interest paid	100	81	107	88	212	336	305	228	220	108
Income taxes paid	902	992	327	779	19	445	20	-87	-21	-1

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $42.68 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Operating margin	3.5%	Operating income / revenue.
EBITDA margin	8.7%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	3.5%	Pre-tax income / revenue.
Net margin	2.8%	Net income / revenue.
FCF margin	-1.5%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	8.4%	Cash from operations / revenue.
Effective tax rate	21.6%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	11.8%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	2.8%	Net income / average total assets.
Return on invested capital (ROIC)	8.8%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
Capex / revenue	9.9%	Capital expenditures / revenue.
D&A / revenue	5.2%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	2.1%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	5.6%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	25.4%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	33.3%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	-25.1%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA growth, 1y	0.5%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	-5.7%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income growth, 1y	-5.2%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	-6.5%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS growth, 1y	3.9%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	-3.2%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow growth, 1y	298.7%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	-21.4%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share growth, 1y	0.0%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	58.7%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share CAGR, 5y	32.0%	Compound annual growth of dividend per share over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	-22.9%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	-9.3%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	-2.1%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	-13.9%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	-6.3%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	-3.4%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	-13.2%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	-4.6%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	-0.2%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	0.49x	Current assets / current liabilities.
Quick ratio	0.29x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.29x	(Cash + short-term investments) / current liabilities.
Debt / equity	0.84x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	19.7%	Total debt / total assets.
Liabilities / assets	76.5%	Total liabilities / total assets.
Net debt	$2.16B	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	0.83x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Interest coverage	5.21x	Operating income / interest expense.
Working capital	-$6.79B	Current assets - current liabilities.
Goodwill and intangibles / assets	4.2%	(Goodwill + intangible assets) / total assets.
Tangible book value	$5.82B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	1.00x	Revenue / average total assets.
Fixed asset turnover	1.46x	Revenue / average property, plant and equipment.
Receivables turnover	386x	Revenue / average receivables.
Days sales outstanding	1 days	365 x average receivables / revenue.
FCF conversion	-54.4%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	118.0%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$1.70	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$61.00	Revenue / diluted weighted shares.
FCF per share	-$0.92	Free cash flow / diluted weighted shares.
Operating cash flow per share	$5.13	Cash from operations / diluted weighted shares.
Book value per share	$14.37	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$11.80	Tangible book value / shares outstanding.
Cash per share	$7.69	(Cash + short-term investments) / shares outstanding.
Payout ratio	44.2%	Dividends paid / net income, when net income is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$20.88B	Share price x shares outstanding.
Enterprise value	$23.03B	Market cap + total debt - cash - short-term investments.
P/E	24.9x	Market cap / net income. Only when net income is positive.
P/S	0.69x	Market cap / revenue.
P/B	2.95x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	3.59x	Market cap / tangible book value, when positive.
P/OCF	8.25x	Market cap / cash from operations, when positive.
EV/Sales	0.77x	Enterprise value / revenue.
EV/EBIT	22.1x	Enterprise value / operating income, when both are positive.
EV/EBITDA	8.84x	Enterprise value / EBITDA, when both are positive.
FCF yield	-2.2%	Free cash flow / market cap.
Earnings yield	4.0%	Net income / market cap (the inverse of P/E).
Dividend yield	1.8%	Dividends paid over the period / market cap.
Shareholder yield	9.2%	(Dividends paid + share buybacks) / market cap.

What was SOUTHWEST AIRLINES CO's revenue in fiscal 2025?

SOUTHWEST AIRLINES CO reported revenue of $28.06B for fiscal 2025, 2.1% higher than the year before.

Was SOUTHWEST AIRLINES CO profitable in fiscal 2025?

Yes. Net income was $441.0M, a net margin of 1.6%.

How much free cash flow did SOUTHWEST AIRLINES CO generate in fiscal 2025?

Cash from operations of $1.84B minus capital expenditures of $2.67B left free cash flow of -$831.0M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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