Southwest Financial Analysis
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Southwest Airlines
Financial Performance Analysis
Presented to
Gary C. Kelly
Chairman of the Board, President and CEO
by
Total Resource Network
Raquel Alston, Tanya Spencer and, Nicole Stenhouse
for BUS 515 Financial Management
Professor James Kerwin
October 3, 2011
Introduction Total Resource Network (TRN) congratulates Southwest Airlines for thirty-eight years of consecutive profitability. This is a major accomplishment that should be applauded especially during this economic recession and recovery period. Southwest’s success has been attributed to their core values and mission that begin with their employees and exceptional customer service. These two attributes along with low airfares have translated back into sound financial performances year after year. It would seem that Southwest is at a cruising altitude with so many multiple years of profitability. TRN understands that Southwest is always striving to elevate to a higher level with their employees, services, fares, and customers therefore an in depth financial analysis was conducted to evaluate Southwest’s financial health. The following financial ratios listed below, along with industry averages and Jet Blue financials, were utilized to gauge Southwest’s financial stability to champion your successes and review your challenges as opportunities.
|Liquidity |Current Ratio |
| |Quick Ratio |
|Efficiency |Inventory Turnover |
| |Avg Coll Period |
| |Fixed Asset Turnover
Southwest Airlines
Financial Performance Analysis
Presented to
Gary C. Kelly
Chairman of the Board, President and CEO
by
Total Resource Network
Raquel Alston, Tanya Spencer and, Nicole Stenhouse
for BUS 515 Financial Management
Professor James Kerwin
October 3, 2011
Introduction Total Resource Network (TRN) congratulates Southwest Airlines for thirty-eight years of consecutive profitability. This is a major accomplishment that should be applauded especially during this economic recession and recovery period. Southwest’s success has been attributed to their core values and mission that begin with their employees and exceptional customer service. These two attributes along with low airfares have translated back into sound financial performances year after year. It would seem that Southwest is at a cruising altitude with so many multiple years of profitability. TRN understands that Southwest is always striving to elevate to a higher level with their employees, services, fares, and customers therefore an in depth financial analysis was conducted to evaluate Southwest’s financial health. The following financial ratios listed below, along with industry averages and Jet Blue financials, were utilized to gauge Southwest’s financial stability to champion your successes and review your challenges as opportunities.
|Liquidity |Current Ratio |
| |Quick Ratio |
|Efficiency |Inventory Turnover |
| |Avg Coll Period |
| |Fixed Asset Turnover
References: Bovee, S. 2010. Financial Management BUS 515 Graduate Learner’s Guide. Roberts Wesleyan College. Rochester, NY.