The Firm in Question is Southwest Airlines.

The purpose of this assignment is to evaluate the financial condition and performance of the firm you and your CLC group members have selected for analysis.

Refer to Tables A-1 through A-5 in Appendix II of the text for the operational definitions of and formulas for numerous common financial ratios, including profitability, liquidity, leverage, activity, and shareholders' return. Using these formulas, complete at least one ratio from each of the five categories, though you may apply as many of the ratios for which you can find the required information in the firm's financial reports. On your calculations page, specify for which formulas you are solving.

In an assessment of approximately 250 words, address the following:

The Organizational and Operational Plans assignment references the possible benefits and risks of forming a strategic alliance. What would be the risks of forming a strategic alliance in terms of the firm's profitability ratios? Which of those five ratios is most likely to reveal immediate information for analysis of the alliance's effectiveness?

A-1 Proitabilty Ratios
return on total assets
1	22.07
Return on stockholders
equity
2	23
return on common equity
3	30
operating profit margin
4	13
net profit margin
5	25.83
A-2 Liquidity Ratios
current ratio
1	0.67
quick ratio
2	0.61
investor to net working capital
3	45
A-3 Leverage Ratios
debt to assets
1	14.79
debt to equity
2	0.27
long term debt to equity
3	28.72
times interest earned
4	0.39
fixed charge coverage
5	69
A-4 Activity Ratios
inventory turnover
1	33.22
fixed assets turnover
2	0.86
total assets turnover
3	0.18
accounts receivable turnover
4	0.45
average collecting period
5	17.67
A-5 Shareholders Return Ratios
dividend yield on common stock
1	1.59
price earnings ratio
2	12.65
dividend payout ratio
3	0.16
cash flow per share
4	7.4