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Company Overview Southwest Airlines Co. (the Company or Southwest ) operates Southwest Airlines, a major passenger airline that provides scheduled air transportation in the United States and near-international markets. Southwest commenced service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities: Dallas, Houston, and San Antonio.
Operating margin is thin at 1.53%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.1%, essentially flat. This is a business that needs a catalyst.
Negative free cash flow of -$831M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$28.88B
▲ +2.1% YoY
Net Income (TTM)
$817M
▼ -5.2% YoY
Op. Margin
3.40%
▲ +0.4pp YoY
ROIC
5.61%
▲ +0.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$376M
▲ +47.8% YoY
Op. Cash Flow (TTM)
$2.40B
▲ +298.7% YoY
Net Debt
$3.07B
Cash & Equiv.
$3.33B
5Y CAGR: +25.4%
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