LUV Debt-to-Equity Ratio Analysis
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 percentileLUV
0.84x
Sector Median
0.72x
Sector Avg
2.46x
Prior Period
0.78x(Jul 2026)
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.
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.
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0.84x
Sector Median
0.72x
Sector Avg
2.46x
How LUV's Debt-to-Equity Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.