LUV Debt-to-Equity Ratio Analysis
Updated 50h ago·SEC filings & market data
Key Takeaway
The debt-to-equity ratio of 0.78x means LUV uses $0.78 of debt for every $1.00 of shareholder equity, indicating a moderate reliance on borrowing.
Sector Performance
54th percentileLUV
0.78x
Sector Median
0.73x
Sector Avg
0.14x
Prior Period
0.93x(Apr 2026)
Deep Analysis
The debt-to-equity ratio of 0.78x means LUV uses $0.78 of debt for every $1.00 of shareholder equity, indicating a moderate reliance on borrowing.
This value sits slightly above the sector median of 0.73x, placing the company in the 54th percentile among its peers, so leverage is near the middle of the group. Trend data is unavailable, with year-over-year change listed as N/A and quarter-over-quarter change also N/A, providing no insight into recent shifts in debt usage. Without a trend, the current level alone suggests LUV carries a typical amount of debt for its sector, neither signaling rising risk nor improving financial stability. This neutral positioning—neither above nor below the sector norm—aligns with the overall NEUTRAL verdict, as it does not point to a clear investment opportunity or concern. The metric supports the neutral stance because the ratio is unremarkable and lacks directional information.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about LUV?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
Who are LUV's closest peers by Debt-to-Equity Ratio?
The closest peers by Debt-to-Equity Ratio include: ETSY (-2.62x), MCK (-3.00x), TDG (-3.40x), VRSK (-3.81x), MAR (-4.04x).
Learn More About Debt-to-Equity Ratio
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Debt/Equity Ratio: How Much Debt Is Too Much?
The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
Master LUV's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full LUV research report →LUV
0.78x
Sector Median
0.73x
Sector Avg
0.14x
How LUV's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.