Question
Analysis Please explain why the ratio moved over the last three year (numerator bigger; nominator lower; or both, etc) Explain in depth. Pick a ratio
Analysis
Please explain why the ratio moved over the last three year (numerator bigger; nominator lower; or both, etc) Explain in depth.
Pick a ratio that has a pattern from Delta Airlines and Southwest Airlines, compare both ratios and tell me why we see the changes. Include table or graph to illustrate your explanations
Southwest Airlines | Year | Year | Year |
Account receivable turnover | 2015 | 2016 | 2017 |
Sales/account receivable | 44.05 | 35.74 | 0 |
Current ratio | |||
Current ratio= CA/CL | 0.54 | 0.66 | 0.7 |
Debt to equity ratio | |||
Debt/Equity | 1.9 | 1.76 | 1.41 |
Profit margin in % | |||
Net income/sales | 0.12 | 0.12 | 0.18 |
Return on Investments | |||
(Investment revenue-Investment cost)/Investment Cost % | 0.006 | 0.015 | 0.02 |
Delta Air Lines | Year | Year | Year |
Account receivable turnover | 2015 | 2016 | 2017 |
Sales/account receivable | 20.15 | 19.20 | 17.35 |
Current ratio | |||
Current ratio= CA/CL | 0.52 | 0.49 | 0.42 |
Debt to equity ratio | |||
Debt/Equity | 3.90 | 3.17 | 2.83 |
Profit margin in % | |||
Net income/sales | 11.12 | 11.03 | 8.67 |
Return on Investments | |||
(Investment revenue-Investment cost)/Investment Cost % | 26.02 | 22.63 | 15.40 |
Step by Step Solution
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To analyze the changes in the ratios over the last three years for both Delta Airlines and Southwest Airlines lets compare the selected ratios and examine the patterns The ratios we will analyze are A...Get Instant Access to Expert-Tailored Solutions
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