Please do the ratios from the following SotuWest Airlines 10-K form. Please explain what they mean. I have answered them, but I am not sure if I am right. Please zoom if needed.

Times Interest Earned Ratio: (Net Income + Interest Expense + Income Tax Expense) / Interest Expense

(2,300 + 118 + 657) / 118 = 26.06 times

Payout Ratio: Cash Dividends Declared on Common Stock / Net Income

565.33 / 2,300 = 24.58% (cash dividends found by multiplying 807,611,634 authorized and issued common shares by $0.70 dividends per common share)

Return on Common Stockholders Equity: (Net Income Preferred Dividends) / Average Common Stockholders Equity

(2,300 0) / 9,842.5 = 23.37%

Southwest Airlines Co. Consolidated Balance Sheet (in millions, except share data) December 31, 2019 December 31, 2018 ASSETS Current assets: Cash and cash equivalents Short-term investments 2.548 1,854 1.835 1.524 Accounts and other receivables 1,086 568 Inventories of parts and supplies, at cost Prepaid expenses and other current assets Total current assets 461 310 287 5,974 5,028 21,629 Property and equipment, at cost: Flight equipment Ground property and equipment Deposits on flight equipment purchase contracts Assets constructed for others 5,672 21,753 4.960 775 248 164 1,768 29,256 Less allowance for depreciation and amortization 27,713 10,688 17,025 970 1.349 577 9,731 19,525 970 Goodwill Operating lease right-of-use assets Other assets 25,895 26,243 S 1,574 1.749 1.416 1.749 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Current operating lease liabilities Air traffic liability Current maturities of long-term debt Total current liabilities 353 4.134 4.457 819 8.952 606 7.905 1,846 2,771 1,053 2.364 2,427 1.701 164 650 Long-term debt less current maturities Air traffic liability - noncurrent Deferred income taxes Construction obligation Noncurrent operating lease liabilities Other noncurrent liabilities Stockholders' equity: Common stock, $1.00 par value: 2.000.000.000 shares authorized; 807,611,634 shares issued in 2019 and 2018 Capital excess of par value Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost: 288,547,318 and 255,008,275 shares in 2019 and 2018 respectively Total stockholders' equity 808 1.510 808 1,581 17,945 (61) 15,967 20 (10,441 9,832 (8,452 9,853 26,243 25,895 Southwest Airlines Co. Consolidated Statement of Income (in millions, except per share amounts) Year ended December 31, 2018 2019 2017 S S S 19,763 OPERATING REVENUES: Passenger Freight Other 20,776 172 1,480 20.455 175 1.335 21,965 173 1.210 Total operating revenues 22,428 21,146 7,649 4,616 OPERATING EXPENSES: Salaries, wages, and benefits Fuel and oil Maintenance materials and repairs Landing fees and airport rentals Depreciation and amortization Other operating expenses Total operating expenses 8.293 4,347 1.223 1,363 1.219 7,305 4,076 1,001 1.107 1.334 1,292 1.218 1,201 2,852 3,026 2,847 19,471 18,759 17,739 OPERATING INCOME 2,957 3.206 3,407 OTHER EXPENSES (INCOME): Interest expense 118 |alellis lifeli$IBI le lE 114 Capitalized interest (36 (49 Interest income 18 112 Other (gains) losses, net Total other expenses (income) 42 142 INCOME BEFORE INCOME TAXES PROVISION (BENEFIT) FOR INCOME TAXES 2.957 657 3,164 699 3,265 (92) 3,357 NET INCOME $ 2.300 S 2.465 S NET INCOME PER SHARE, BASIC S 4.28 S 4.30 S 5.58 NET INCOME PER SHARE, DILUTED $ 4.27 S 4.29 S 5.57 Southwest Airlines Co. Consolidated Statement of Comprehensive Income (in millions) Year ended December 31, 2018 2019 2017 NET INCOME 2.300 S 2,465 S 3,357 (53) (26 317 (25 6 7 Unrealized gain (loss) on fuel derivative instruments, net of deferred taxes of ($16), ($7), and $185 Unrealized gain (loss) on interest rate derivative instruments, net of deferred taxes of ($8), $1, and $4 Unrealized gain (loss) on defined benefit plan items, net of deferred taxes of ($9), $15, and $2 Other, net of deferred taxes of $8, (52), and $5 OTHER COMPREHENSIVE INCOME (LOSS) COMPREHENSIVE INCOME (29 3 52 (6) 11 S 26 S $ $ (81) 2.219 335 3,692 S 2.491 S See accompanying notes. Southwest Airlines Co. Consolidated Statement of Stockholders' Equity (in millions, except per share amounts) Common Capital in excess of par value Year ended December 31, 2019, 2018, and 2017 Accumulated other Retained comprehensive earnings income (loss) 10,761 s Stock Total Treasury stock (4,872) S 808 1,410 (323) 7.784 (1,600) 10 (1,600) 14 | || | Tale (286) 3.357 (286) 3,692 S 808 1,451 13,832 S (6,462) S 9.641 (18) 18 13,850 S 808 1,451 S (6.462 S 9.641 (2,000 (2,000 Balance at December 31, 2016 Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $.475 per share Comprehensive income Balance at December 31, 2017 (as reported) Cumulative effect of adopting Accounting Standards Update No. 2017-12. Targeted Improvements to Accounting for Hedging Activities (See Note 2 to the Consolidated Financial Statements for additional information) Balance after adjustment for the new accounting standard Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $.605 per share Comprehensive income Balance at December 31, 2018 (as reported) Cumulative effect of adopting Accounting Standards Update No. 2016-02, Leases, codified in Accounting Standards Codification 842 (See Note 2 to the Consolidated Financial Statements for additional information) Balance after adjustment for the new accounting standard Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, $.700 per share Comprehensive income Balance at December 31, 2019 @115|20||||||||||||191121 | Tala (348) (348) 2.491 2,465 $ 1,510 S 15,967 S (8,452 S 9.853 55 16.022 S 808 1,510 (8,452) (2.000) 11 55 9,908 (2.000) 27 (377) 2.300 (377) 2.219 808 S 1,581 17.945 S (61) (10.441) S 9,832 Southwest Airlines Co. Consolidated Statement of Cash Flows (in millions) ) Year ended December 31, 2019 2018 2017 S 2.300 S 2,465 S 3,357 1,219 1.201 1.218 CASH FLOWS FROM OPERATING ACTIVITIES: Net income Adjustments to reconcile net income to cash provided by (used in) operating activities: Depreciation and amortization Boeing 737-300 aircraft grounding charge Unrealized realized gains on fuel derivative instruments Deferred income taxes Changes in certain assets and liabilities: Accounts and other receivables 63 (50) 301 (1.066 (94 117 (102 239 (227 (262 233 298 545 440 506 343 Other assets Accounts payable and accrued liabilities Air traffic liability Other liabilities Cash collateral received from (provided to) derivative counterparties Other, net Net cash provided by operating activities 316 (277 25 (108) 3,987 14 (121) 3,929 4,893 (1,027 (1,922) (2,123 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures Supplier proceeds Assets constructed for others 400 (54 (126 (2.380 Purchases of short-term investments Proceeds from sales of short-term and other investments Other, net (2,122 2,446 2,221 (2.409) 2,342 5 (2,038 Net cash used in investing activities (303 (2,408) 600 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt Proceeds from Employee stock plans Reimbursement for assets constructed for others Payments of long-term debt and finance lease obligations Payments of cash dividends Repayment of construction obligation Repurchase of common stock Other, net (615 (342 (592 (372 (332 (30 (274) (10) (1,600 15 (2.000) 111191111ge 1 (43) (2.990) (2.000) 3 (2.496) Net cash used in financing activities (1,706 ( 1814 @ Steel G15|41|| NET CHANGE IN CASH AND CASH EQUIVALENTS 694 359 (185 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1.854 1,495 1.680 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,548 s 1.854 S 1,495 CASH PAYMENTS FOR: Interest, net of amount capitalized S 88 S 107 S 81 Income taxes S 779 S 327 S 992 S S S 233 SUPPLEMENTAL DISCLOSURE OF NONCASH TRANSACTIONS: Flight equipment under finance leases Assets constructed for others Supplier receivables 1 65 S S ISTEMI S 197 S 428 S S