Southwest Airlines Total Debt vs. Net Income
S1OU34 Stock | BRL 164.56 0.00 0.00% |
For Southwest Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Southwest Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Southwest Airlines Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Southwest Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Southwest Airlines Co over time as well as its relative position and ranking within its peers.
Southwest |
Southwest Airlines Net Income vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Southwest Airlines's current stock value. Our valuation model uses many indicators to compare Southwest Airlines value to that of its competitors to determine the firm's financial worth. Southwest Airlines Co is currently regarded number one company in total debt category among its peers. It also is currently regarded as top stock in net income category among its peers making up about 0.10 of Net Income per Total Debt. The ratio of Total Debt to Net Income for Southwest Airlines Co is roughly 10.52 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Southwest Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Southwest Airlines' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Southwest Total Debt vs. Competition
Southwest Airlines Co is currently regarded number one company in total debt category among its peers. Total debt of Airlines industry is at this time estimated at about 162.84 Billion. Southwest Airlines holds roughly 10.27 Billion in total debt claiming about 6% of stocks in Airlines industry.
Southwest Net Income vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Southwest Airlines |
| = | 10.27 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Southwest Airlines |
| = | 977 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Southwest Net Income Comparison
Southwest Airlines is currently under evaluation in net income category among its peers.
Southwest Airlines Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Southwest Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Southwest Airlines will eventually generate negative long term returns. The profitability progress is the general direction of Southwest Airlines' change in net profit over the period of time. It can combine multiple indicators of Southwest Airlines, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. The company was founded in 1967 and is headquartered in Dallas, Texas. SOUTHWEST AIDRN operates under Airlines classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 54448 people.
Southwest Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Southwest Airlines. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Southwest Airlines position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Southwest Airlines' important profitability drivers and their relationship over time.
Use Southwest Airlines in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Southwest Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Southwest Airlines will appreciate offsetting losses from the drop in the long position's value.Southwest Airlines Pair Trading
Southwest Airlines Co Pair Trading Analysis
The ability to find closely correlated positions to Southwest Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Southwest Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Southwest Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Southwest Airlines Co to buy it.
The correlation of Southwest Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Southwest Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Southwest Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Southwest Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Southwest Airlines position
In addition to having Southwest Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Southwest Stock
To fully project Southwest Airlines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Southwest Airlines at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Southwest Airlines' income statement, its balance sheet, and the statement of cash flows.