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Southwest Z Score

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LUV -- USA Stock  

Fiscal Quarter End: March 31, 2020  

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Additionally, see Southwest Airlines Piotroski F Score and Southwest Airlines Valuation analysis.
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Southwest Airlines Return on Invested Capital is fairly stable at the moment as compared to the last year. Southwest Airlines reported Return on Invested Capital of 0.17 in 2019. Invested Capital is likely to grow to about 18.4 B in 2020, whereas Capital Expenditure is likely to drop (1.1 B) in 2020. Southwest Airlines Direct Expenses is fairly stable at the moment as compared to the last year. Southwest Airlines reported Direct Expenses of 6.93 Billion in 2019. Cost of Revenue is likely to grow to about 7.5 B in 2020, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 2.9 B in 2020.

Southwest Z Score Analysis

Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Current Liabilities
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Southwest Airlines Company Z Score

5.8
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )
ValuationFinancialsBuy or Sell

Southwest Distress Driver Correlations

About Z Score

To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1 indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition
Accumulated Other Comprehensive Income
Southwest Airlines Company has Z Score of 5.8. This is 42.51% higher than that of the Industrials sector, and 395.73% higher than that of Airlines industry, The Z Score for all stocks is 33.49% higher than the company.

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Southwest Airlines Institutional Holders

Current Institutional Investors

Security TypeSharesValue
Primecap Management CoCommon Shares71.9 M3.9 B
Berkshire Hathaway IncCommon Shares53.6 M2.9 B
State Street CorpCommon Shares38.7 M2.1 B
Vanguard Group IncCommon Shares35.4 M1.9 B
Blackrock IncCommon Shares25.8 M1.4 B
Boston PartnersCommon Shares9.6 M519.6 M
Ameriprise Financial IncCommon Shares7.2 M390 M

Southwest Fundamentals

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Additionally, see Southwest Airlines Piotroski F Score and Southwest Airlines Valuation analysis. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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