LUVNEUTRAL

LUV Debt-to-Equity Ratio Analysis

0.84x

Updated 1155h ago·SEC filings & market data

Key Takeaway

A Debt-to-Equity Ratio of 0.84x means the company uses $0.84 of debt for every $1 of shareholder equity, showing how leveraged its capital structure is.

Sector Performance

58th percentile

LUV

0.84x

Sector Median

0.72x

Sector Avg

2.46x

Prior Period

0.78x(Jul 2026)

↓ Declining
📊

Deep Analysis

A Debt-to-Equity Ratio of 0.84x means the company uses $0.84 of debt for every $1 of shareholder equity, showing how leveraged its capital structure is.

This level sits above the sector median of 0.74x, placing it in the 57th percentile among peers, so it carries slightly more debt than the typical company in its group. Year-over-year change is not available, but quarter-over-quarter the ratio rose 7.7%, moving from 0.78x to 0.84x. The moderate leverage combined with rising debt suggests increased financial risk, but the ratio remains below 1x, which is generally manageable. This does not clearly signal a major problem, yet the upward drift warrants attention. Overall, this metric neither strongly contradicts nor strongly supports the NEUTRAL verdict, aligning with a balanced view of risk and opportunity.

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.

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.

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LUV

0.84x

Sector Median

0.72x

Sector Avg

2.46x

How LUV's Debt-to-Equity Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.