Current Ratio
Updated 200h ago
Sector Performance
7th percentileLUV
0.48x
Sector Median
1.20x
Sector Avg
2.57x
Deep Analysis
A current ratio measures a company's ability to pay its short-term bills with its short-term assets; a ratio of 0.48x means LUV has only $0.48 in current assets for every $1 of current liabilities, indicating potential liquidity pressure.
Among its sector peers, the median current ratio is 1.20x, and LUV sits in the 7th percentile, meaning 93% of peers have a stronger liquidity position. No trend data is available — the year-over-year change, quarter-over-quarter change, and last eight quarters are all listed as not applicable, with only a single historical value of 0.48x. The combination of an extremely low level with no trend information creates a clear liquidity risk but leaves uncertainty about whether the situation is stable or deteriorating. This metric directly contradicts the overall NEUTRAL verdict, as a current ratio far below the sector median typically signals financial weakness that would support a more negative assessment.
Frequently Asked Questions
What does the Current Ratio tell investors about LUV?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
Who are LUV's closest peers by Current Ratio?
The closest peers by Current Ratio include: SPG (0.41x), CHTR (0.40x), USB (0.40x), GEN (0.40x), DRI (0.39x).
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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0.48x
Sector Median
1.20x
Sector Avg
2.57x
How LUV's Current Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.