Assignment: The first part of this assignment is to calculate each ratio in the list that follows this paragraph, for the company you chose in the selection essay as well as for the comparison company you chose at the same time. You will calculate each ratio for each company for the last three fiscal year-ends.
The ratios: Accounts Receivable Turnover; Average Collection Period for A/R; Current Ratio; Debt to Equity Ratio; Inventory turnover; Average Inventory days outstanding; Return on Assets; Return on Equity; Return on Investment; Return on Net Operating Assets; Profit Margin; Asset Turnover
The final part of this assignment is to analyze your selected company's performance or financial position with respect to the ratios you have calculated. Using three years' of ratios and information about the comparison company, describe in depth whether your company's performance or position has improved over the three-year period or has grown worse. Your explanation should refer to the patterns in the ratios as well as to changes in the financial statement items that are part of the ratio. For example, profit margin might increase because profits are up while sales are constant, because sales are down while profits are constant, or because both sales and profits have changed. Your analysis will draw from the ratios, the financial statements, management's discussion in the annual report and other sources as needed to help explain what you observe in the ratios.
Southwest
Cash and Cash Equivalents 51 , 565, 000 51, 814, 000 52, 762, 000 53, 959,000 Short - Term Investments 5203, 000 5025, 000 5487, 000 51, 465, 000 NEt RECEIVables 52, 314, 000 52, 3 7 7, 000 52, 06 4, 000 52, 020, 000 Inventory $1 , 055, 000 51, 320,000 5051, 000 Other Current Assets 51 , 203, 000 51, 450, 000 51, 247, 000 5015, 000 Total Current ASSETS 56, 3:40, 000 ST, $.04, 000 57, 451, 000 59, 056, 000 Long - Term Investments Fixed ASSETS 528, 3:35, 000 526, 563,000 524, 375,000 523, 030, 000 Goodwill! 59, 781, 000 59, 7:04,000 59, 7:04, 000 59, 7:04, 000 Intangible ASSETS 510, 024, 000 54, 547, 00 0 54, 8:4 4, 000 54, 861, 00 0 Other Assets \\54 , 7:44, 000 53, 3:09, 000 51 , 733, 000 51, 420, 0 01) Deferred Asset Charges 5242, 000 51, 354, 000 53, 00 4, 000 54, 950, 000 Total ASSETS SED, 265, 000 5:53 , 67 1, 000 5:51 , 261, 000 5:53, 13:4, 000 Accounts Payable* 57, 390, 000 58, 524, 000 57, 403, 000 57, 24 4, 000 Short - Term Debt ! Current Portion of 52, 473, 000 52, 242, 000 $1 , 131, 000 54, 144,000 Long - TERM Debt Other Current Liabilities 58, 725, 000 53, 193, 0 00 56, 705, 000 50, 130, 000 Total Current Liabilities* 518, 578, 000\\ 518, 959, 000\\ $15, 239, 000 51 7, 526, 000 Long - TERM Debt 514, 054, 000 56, 592, 000 50, 201, 000 SO, TOO, OOD Other Liabilities $10, 295, 000 $12, 031 , 000\\ 515, 250,000\\ 515, 740, 00 0 Deferred Liability Charges 53, 652, 000 53.559, 000 52, ZTE,OOD 52, 240, 0 00 Mist. Stocks Minority Interest Total Liabilities 5:45, 575, 000 541 , 141, 000 538, 974,000 $42, 20:4, 0:00Stock Holders Equity Common Stocks 50 50 50 50 Capital Surplus III $11,671,000 $12,053,000 512,294,000 512,936,000 Retained Earnings $10,039,000 58,256,000 57,903,000 55,562,000 Treasury Stock ($198,000) ($158,000) ($274,000) ($373,000) Other Equity IIII ($7,825,000) (57,621,000) ($7,636,000) (57,275,000) Total Equity $13,687,000 $12,530,000 $12,287,000 $10,850,000 Total Liabilities & Equity $60,266,000 $53,671,000 $51,261,000 $53,134,000\fAnnual Financials for Southwest Airlines CO. { VEN Fiatios Fiscal year is January - December . All valu= = UISD millions . 2014 2015 2017 201.8 5 - year trend { Sales REVENUE TO.GTE 21.USE ZLATE? { Cost of Goods Sold 1LOGS j ind . DEA 1 - DEE 1 =. JOE 14. 2.4 E 15.E4 E COZZE Excluding CIBA BED'EL 12.64 E IS. THE : [`= preciation & Amortization EXPENSE 1. DZE 1 . 2 CE 1. Z ZE T_EE ! HEZE [`= preciation 1. ZZE 1. Z ZE T. ZE : WEL Amortization of Intergit = = WE " WE ` Gross Income .. 5ZE B.THE B. ZZE B.ATE 2014 2015 2017 2010 { - year trend {\\ SGRA EXPENSE Z.ZIE? 2. ZIE ZTE FESearch & DEVELOPMENT Other SGRA 2. ZIE Z. ZIE L.PE 2. ESE _ther Operating EXPENSE UNLEVEL EXPENSE* 5:34/1{ 2 25^ 2`` EEIT after Unusual EXPENSE 2. 14 E !` Non Operating Income * EXPENSE 25041 (42 MM] Non - _Operating Interest Income THI 2.4\\1 3.541 Equity in AFF `:ES IFTEtax'! ` Interest EXPENSE TOV 7.5` GOOSE Interest EXPENSE 15.31/1 Interest Capitalized 4TH` HIRE DOLL {\\ Pretax Income 1. B. ZE 3. 4 9 E 3. 45E }. ZIE INCOME TE` 1. LIE ``= =\\1: Income TEX - Current Domestic 20 11 1. 41 E ITEM Income Tax - Current Foreign 20.3M1{ Income Tax - DeferrEd Domestic 27M 420 1/1 [ TOTE Income Tax - [=ferred Foreign 421 M \\Team= Tax Credits Equity in Aff }:ES Other After Tax Income [EXPENSE] 4^ 4^ {consolidated Net Income* 1 . 14 E 2.THE 2.THE Z. ATE? Minority Interest EXPENSE
