The information below is the historic ratios and predicted ratios for southwest airlines

1- Also explain how the projected ratios compare to the prior year ratios.

2- Explain the importance of this comparison and how it can impact southwest when using the ratio table below.

Historical Ratios Projected Ratios 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Current Ratio 2.00 2.00 Current Ratio 1.60 1.70 1.80 Quick Ratio 1.80 1.70 Quick Ratio 1.80 1.70 1.75 Total Debt-to-Total-Assets Ratio 0.26 0.32 Debt-to-Total-Assets Ratio 0.20 0.20 0.20 Total Debt-to-Equity Ratio 2.65 1.03 Debt-to-Equity Ratio 0.70 0.60 0.50 Times-Interest-Earned Ratio -15 5 Times-Interest-Earned Ratio 5 5 5 Inventory Turnover -25.60 28.60 Inventory Turnover 28.00 30.00 30.00 Fixed Assets Turnover 0.50 0.90 Fixed Assets Turnover 1.10 1.05 1.00 Total Assets Turnover 0.45 0.90 Total Assets Turnover 0.90 0.85 0.80 Accounts Receivable Turnover 0 1 Accounts Receivable Turnover NA NA NA Average Collection Period 35.00 29.00 Average Collection Period 30.00 29.95 30.00 Gross Profit Margin % -21% 14% Gross Profit Margin % 25% 30% 32% Operating Profit Margin % -42% 8% Operating Profit Margin % 15% 18% 19% ROA % -10% 3% ROA % 10% 11% 12% ROE % -33% 10% ROE % 20% 25% 40%