Southwest Income Before Tax vs Operating Income Analysis

LUV Stock

USD 29.04 0.10 0.35%

Southwest Airlines financial indicator trend analysis is much more than just breaking down Southwest Airlines prevalent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Southwest Airlines is a good investment. Please check the relationship between Southwest Airlines Income Before Tax and its Operating Income accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.

For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.

Income Before Tax vs Operating Income

Income Before Tax vs Operating Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Southwest Airlines Income Before Tax account and Operating Income. At this time, the significance of the direction appears to have totally related.

The correlation between Southwest Airlines' Income Before Tax and Operating Income is 0.99. Overlapping area represents the amount of variation of Income Before Tax that can explain the historical movement of Operating Income in the same time period over historical financial statements of Southwest Airlines, assuming nothing else is changed. The correlation between historical values of Southwest Airlines' Income Before Tax and Operating Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Income Before Tax of Southwest Airlines are associated (or correlated) with its Operating Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Operating Income has no effect on the direction of Income Before Tax i.e., Southwest Airlines' Income Before Tax and Operating Income go up and down completely randomly.

Correlation Coefficient

0.99

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

Income Before Tax

Income Before Tax which can also be referred as pre-tax income is reported on Southwest Airlines income statement and is an important metric when analyzing Southwest Airlines profitability. Accounting techniques because taxes can be complex, and not perfectly consistent from one company to company, an analyst may use pre-tax income as a more stable measure of profitability.

Operating Income

Operating Income is the amount of profit realized from Southwest Airlines operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Southwest Airlines is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Most indicators from Southwest Airlines' fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Southwest Airlines current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Southwest Airlines. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.

For more information on how to buy Southwest Stock please use our How to Invest in Southwest Airlines guide.At this time, Southwest Airlines' Enterprise Value Over EBITDA is fairly stable compared to the past year. Enterprise Value Multiple is likely to climb to 7.70 in 2024, whereas Tax Provision is likely to drop slightly above 130.2 M in 2024.

	2021	2022	2023	2024 (projected)
Total Operating Expenses	2.4B	3.7B	4.0B	4.0B
Cost Of Revenue	11.7B	19.1B	21.9B	23.0B

Total Operating Expenses Cost Of Revenue

Southwest Airlines fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock	Common Stock Total Equity
Total Assets		0.87	0.72	0.93	0.72	0.89	-0.46	0.89	0.85	0.89	-0.28	0.88	0.92	-0.56	0.93	0.85	0.45	-0.78	0.99	0.9	0.18	0.06	0.19	0.94	0.77	0.78
Short Long Term Debt Total	0.87		0.55	0.71	0.47	0.56	-0.61	0.67	0.99	0.57	-0.21	0.99	0.89	-0.45	0.98	0.66	0.36	-0.64	0.92	0.99	0.03	-0.03	-0.01	0.77	0.53	0.54
Other Current Liab	0.72	0.55		0.85	0.26	0.7	-0.48	0.61	0.57	0.7	-0.67	0.57	0.63	-0.39	0.57	0.75	0.07	-0.51	0.73	0.59	-0.13	0.01	-0.37	0.8	0.48	0.49
Total Current Liabilities	0.93	0.71	0.85		0.64	0.91	-0.5	0.88	0.71	0.9	-0.49	0.73	0.86	-0.56	0.75	0.91	0.35	-0.77	0.91	0.76	0.18	0.04	0.1	0.98	0.71	0.72
Total Stockholder Equity	0.72	0.47	0.26	0.64		0.79	0.0	0.77	0.41	0.8	0.09	0.46	0.62	-0.4	0.58	0.56	0.57	-0.65	0.64	0.49	0.45	0.2	0.64	0.61	0.86	0.86
Property Plant And Equipment Net	0.89	0.56	0.7	0.91	0.79		-0.15	0.9	0.51	1.0	-0.22	0.56	0.74	-0.57	0.69	0.79	0.37	-0.74	0.82	0.59	0.32	0.17	0.32	0.84	0.83	0.84
Net Debt	-0.46	-0.61	-0.48	-0.5	0.0	-0.15		-0.38	-0.74	-0.14	0.5	-0.69	-0.6	0.41	-0.52	-0.46	-0.08	0.49	-0.54	-0.68	0.33	0.54	0.31	-0.63	0.05	0.05
Retained Earnings	0.89	0.67	0.61	0.88	0.77	0.9	-0.38		0.65	0.89	-0.15	0.67	0.89	-0.81	0.73	0.73	0.25	-0.95	0.84	0.7	0.36	0.0	0.29	0.88	0.64	0.64
Cash	0.85	0.99	0.57	0.71	0.41	0.51	-0.74	0.65		0.51	-0.28	1.0	0.89	-0.48	0.94	0.66	0.33	-0.66	0.91	0.99	-0.05	-0.14	-0.08	0.79	0.44	0.45
Non Current Assets Total	0.89	0.57	0.7	0.9	0.8	1.0	-0.14	0.89	0.51		-0.22	0.56	0.73	-0.54	0.69	0.79	0.39	-0.72	0.83	0.6	0.32	0.18	0.33	0.83	0.85	0.85
Non Currrent Assets Other	-0.28	-0.21	-0.67	-0.49	0.09	-0.22	0.5	-0.15	-0.28	-0.22		-0.26	-0.2	-0.03	-0.17	-0.47	0.01	0.09	-0.31	-0.27	0.37	0.1	0.28	-0.45	-0.1	-0.11
Cash And Short Term Investments	0.88	0.99	0.57	0.73	0.46	0.56	-0.69	0.67	1.0	0.56	-0.26		0.89	-0.44	0.96	0.7	0.39	-0.65	0.93	1.0	-0.02	-0.09	-0.01	0.81	0.51	0.51
Net Receivables	0.92	0.89	0.63	0.86	0.62	0.74	-0.6	0.89	0.89	0.73	-0.2	0.89		-0.69	0.88	0.75	0.3	-0.87	0.93	0.91	0.28	-0.1	0.1	0.9	0.58	0.59
Common Stock Shares Outstanding	-0.56	-0.45	-0.39	-0.56	-0.4	-0.57	0.41	-0.81	-0.48	-0.54	-0.03	-0.44	-0.69		-0.47	-0.29	0.22	0.91	-0.54	-0.45	-0.32	0.27	-0.07	-0.58	-0.15	-0.15
Non Current Liabilities Total	0.93	0.98	0.57	0.75	0.58	0.69	-0.52	0.73	0.94	0.69	-0.17	0.96	0.88	-0.47		0.69	0.43	-0.67	0.96	0.96	0.05	0.0	0.09	0.8	0.65	0.66
Inventory	0.85	0.66	0.75	0.91	0.56	0.79	-0.46	0.73	0.66	0.79	-0.47	0.7	0.75	-0.29	0.69		0.49	-0.59	0.83	0.74	0.03	0.03	0.11	0.91	0.68	0.69
Other Current Assets	0.45	0.36	0.07	0.35	0.57	0.37	-0.08	0.25	0.33	0.39	0.01	0.39	0.3	0.22	0.43	0.49		-0.09	0.43	0.42	-0.05	0.23	0.47	0.4	0.64	0.64
Other Stockholder Equity	-0.78	-0.64	-0.51	-0.77	-0.65	-0.74	0.49	-0.95	-0.66	-0.72	0.09	-0.65	-0.87	0.91	-0.67	-0.59	-0.09		-0.75	-0.67	-0.33	0.14	-0.21	-0.8	-0.43	-0.43
Total Liab	0.99	0.92	0.73	0.91	0.64	0.82	-0.54	0.84	0.91	0.83	-0.31	0.93	0.93	-0.54	0.96	0.83	0.43	-0.75		0.94	0.11	0.02	0.1	0.92	0.72	0.73
Total Current Assets	0.9	0.99	0.59	0.76	0.49	0.59	-0.68	0.7	0.99	0.6	-0.27	1.0	0.91	-0.45	0.96	0.74	0.42	-0.67	0.94		0.0	-0.07	0.01	0.84	0.54	0.55
Short Term Debt	0.18	0.03	-0.13	0.18	0.45	0.32	0.33	0.36	-0.05	0.32	0.37	-0.02	0.28	-0.32	0.05	0.03	-0.05	-0.33	0.11	0.0		0.3	0.51	0.09	0.36	0.36
Intangible Assets	0.06	-0.03	0.01	0.04	0.2	0.17	0.54	0.0	-0.14	0.18	0.1	-0.09	-0.1	0.27	0.0	0.03	0.23	0.14	0.02	-0.07	0.3		0.17	-0.06	0.32	0.32
Accounts Payable	0.19	-0.01	-0.37	0.1	0.64	0.32	0.31	0.29	-0.08	0.33	0.28	-0.01	0.1	-0.07	0.09	0.11	0.47	-0.21	0.1	0.01	0.51	0.17		0.09	0.45	0.44
Current Deferred Revenue	0.94	0.77	0.8	0.98	0.61	0.84	-0.63	0.88	0.79	0.83	-0.45	0.81	0.9	-0.58	0.8	0.91	0.4	-0.8	0.92	0.84	0.09	-0.06	0.09		0.63	0.64
Common Stock	0.77	0.53	0.48	0.71	0.86	0.83	0.05	0.64	0.44	0.85	-0.1	0.51	0.58	-0.15	0.65	0.68	0.64	-0.43	0.72	0.54	0.36	0.32	0.45	0.63		1.0
Common Stock Total Equity	0.78	0.54	0.49	0.72	0.86	0.84	0.05	0.64	0.45	0.85	-0.11	0.51	0.59	-0.15	0.66	0.69	0.64	-0.43	0.73	0.55	0.36	0.32	0.44	0.64	1.0

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Southwest Airlines Account Relationship Matchups

Southwest Airlines fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	25.9B	34.6B	36.3B	35.4B	36.5B	38.3B
Short Long Term Debt Total	4.0B	12.2B	12.3B	9.4B	9.2B	9.7B
Total Current Liabilities	9.0B	7.5B	9.2B	10.4B	12.3B	12.9B
Total Stockholder Equity	9.8B	8.9B	10.4B	10.7B	10.5B	5.4B
Property Plant And Equipment Net	18.4B	17.7B	16.4B	18.7B	20.6B	21.6B
Net Debt	1.4B	1.1B	(199M)	(61M)	(88M)	(83.6M)
Retained Earnings	17.9B	14.8B	15.8B	16.3B	16.3B	17.1B
Cash	2.5B	11.1B	12.5B	9.5B	9.3B	9.8B
Non Current Assets Total	19.9B	19.4B	18.3B	20.6B	22.5B	23.7B
Non Currrent Assets Other	577M	722M	882M	(1.4B)	(1.7B)	(1.6B)
Cash And Short Term Investments	4.1B	13.3B	15.5B	12.3B	11.5B	12.0B
Net Receivables	1.1B	1.1B	1.4B	1.0B	1.1B	1.2B
Common Stock Shares Outstanding	539M	565M	609M	642M	640M	578.0M
Liabilities And Stockholders Equity	25.9B	34.6B	36.3B	35.4B	36.5B	38.3B
Non Current Liabilities Total	7.1B	18.2B	16.7B	14.3B	13.7B	14.4B
Inventory	529M	414M	537M	790M	807M	847.4M
Other Current Assets	287M	295M	638M	686M	520M	295.3M
Other Stockholder Equity	(8.9B)	(6.7B)	(6.6B)	(6.8B)	(6.7B)	(6.3B)
Total Liab	16.1B	25.7B	25.9B	24.7B	26.0B	27.3B
Total Current Assets	6.0B	15.2B	18.0B	14.8B	14.0B	14.7B
Short Term Debt	1.2B	526M	692M	267M	237M	278.2M
Intangible Assets	413M	399M	296M	295M	340.4M	308.2M
Accounts Payable	1.6B	931M	1.3B	2.0B	265M	251.8M
Current Deferred Revenue	4.5B	3.8B	5.6B	6.1B	6.6B	6.9B
Property Plant And Equipment Gross	18.4B	17.7B	29.2B	32.4B	35.0B	36.8B
Accumulated Other Comprehensive Income	(61M)	(105M)	388M	344M	395.6M	415.4M
Other Liab	4.3B	6.5B	5.2B	5.1B	5.9B	6.2B
Other Assets	529M	1.0B	882M	855M	983.3M	618.2M
Long Term Debt	1.8B	10.1B	10.3B	8.0B	8.0B	8.4B
Treasury Stock	(10.4B)	(10.9B)	(10.9B)	(10.8B)	(9.8B)	(9.3B)
Property Plant Equipment	17.0B	15.8B	16.4B	18.7B	21.5B	13.8B
Short Term Investments	1.5B	2.3B	3.0B	2.8B	2.2B	1.8B
Net Tangible Assets	9.8B	12.8B	9.4B	13.0B	15.0B	8.9B
Retained Earnings Total Equity	17.9B	14.8B	15.8B	16.3B	18.7B	11.2B
Long Term Debt Total	1.8B	10.1B	10.3B	8.0B	9.3B	9.7B
Capital Surpluse	1.6B	4.2B	4.2B	4.0B	4.6B	4.9B

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