Southwest Airlines Co. (LUV) scored on five pillars from its reported financial statements, and ranked against 270 Industrials companies.
Southwest Airlines Co. (LUV) scores 3.7 out of 10 as of , computed from its reported financial statements. That reads as low quality. The reading rests on solvency, and efficiency is what holds it back.
Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
We cannot judge Southwest Airlines Co. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.
Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →
As of October 18, 2026, Southwest Airlines Co. scores 3.7 out of 10 on the Lemma Quality Score, a reading of low quality. Scores this low usually reflect thin margins, a stretched balance sheet or an erratic record, and the pillars below show which. Nothing in it comes from the share price or from forecasts: it is Southwest Airlines Co.’s own reported numbers, scored pillar by pillar.
Set against 270 Industrials companies, Southwest Airlines Co. lands at the 20th percentile, in the bottom quarter of the group. The median across the group is 5.6, and the top quarter begins at 6.5, so Southwest Airlines Co. is well below the typical company here.
Southwest Airlines Co.’s profitability score is 3.2 out of 10 (weak). Against a median of 4.9 among 262 Industrials companies, that is well below the group and the 33rd percentile. A low reading here is the first thing to explain: it is the pillar most closely tied to whether the business creates value at all.
Solvency scores 6.6 out of 10, which reads as average. The median across 241 Industrials companies is 7.1, so Southwest Airlines Co. is below its peers on this pillar and ranks at the 43rd percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.
Growth scores 2.9 out of 10, which reads as weak. The median across 216 Industrials companies is 5.4, so Southwest Airlines Co. is well below its peers on this pillar and ranks at the 17th percentile. A low growth score is common for large, established companies and is not a verdict on quality on its own, but it limits how the business can compound.
Southwest Airlines Co.’s efficiency score is 2.5 out of 10 (weak). Against a median of 6.2 among 264 Industrials companies, that is well below the group and the 7th percentile. Weak efficiency means more capital is tied up to produce each unit of output, or less of reported profit is arriving as cash.
Southwest Airlines Co.’s predictability score is 3.1 out of 10 (weak). Against a median of 5.0 among 267 Industrials companies, that is well below the group and the 22nd percentile. A low predictability score often belongs to cyclical businesses, where good and bad years alternate with the economy or with commodity prices.
The gap between Southwest Airlines Co.’s best and worst pillar is wide: solvency at 6.6 against efficiency at 2.5, 4.1 points apart. An average of two readings this different deserves a closer look than the headline number. Leading with solvency is a defensive strength: it protects the business more than it grows it. Weak efficiency can reflect a heavy investment phase, which only pays off if the investment earns a return.
Of everything that could lift Southwest Airlines Co.’s score, efficiency matters most. Bringing it up to the 6.2 median of Industrials companies would take the overall from 3.7 to roughly 4.3. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and Southwest Airlines Co. has a reading on every pillar.
For a fair comparison, start with companies of a similar size: the Industrials companies below are nearest to Southwest Airlines Co. by market value, each scored on the same pillars.
How much profit the company generates from its capital and sales.
The company’s ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.
This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.
Educational only. Not investment advice.
On this reading Southwest Airlines Co. scores 3.7 out of 10, which reads as low quality. Its strongest pillar is solvency, its weakest is efficiency. Quality is not the same as a good investment: the score says nothing about the price you would pay.
Southwest Airlines Co. ranks at the 20th percentile of the 270 Industrials companies Lemma publishes a score for. The median there is 5.6 and the top quarter starts at 6.5, against Southwest Airlines Co.’s 3.7.
Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.
This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for LUV are in the app.
No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.
Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.
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