LUVNEUTRAL

LUV Return on Equity (ROE) Analysis

11.1%

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) is the profit a company generates for each dollar of shareholder investment, and LUV’s 11.1% means it earns about 11.1 cents per dollar of equity.

Sector Performance

41th percentile

LUV

11.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

10.1%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) is the profit a company generates for each dollar of shareholder investment, and LUV’s 11.1% means it earns about 11.1 cents per dollar of equity.

That sits below the sector median of 13.4%, placing LUV at the 41st percentile among peers, so the company is less efficient at converting equity into profit than most competitors. The trend direction over the last eight quarters is not available, and the year-over

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about LUV?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are LUV's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.