Profitability analysis using ratios helps an analyst understand how a company has performed over a fiscal period. Quantitative analysis can be limited in demonstrating a company's financial performance; therefore, it is critical that external factors are considered when analyzing financial profitability. Analyzing past three years of financial statements of Southwest . Discuss how the following might impact Southwest current and future profitability:

1. What was the economic outlook like in the most recent year?
2. Give an example and provide an explanation of a negative external factor that may hurt profitability, such as competitors, economy, seasonality, changes in consumer behavior, etc.
3. Identify two or three strengths you noticed about this company despite the external factors (low inventory, increased revenue, improved profitability, etc.).