Using vertical analysis (show your calculations), present values for this year and last year:

1. gross profit margin,

2. net profit margin (use the last "net income" line on the statement)

3. Comment on changes: Are sales increasingly profitable? How is gross profit and net income changing, as a dollar value?

Here's the link to the 10-K report. You'll find the statement of income on page 68.

https://www.sec.gov/Archives/edgar/data/92380/000009238016000175/luv-12312015x10k.htm

Using vertical analysis (show your calculations), present values for this year and last year: 1. gross profit margin 2. net profit margin (use the last "net income" line on the statement) 3. Comment on changes: Are sales increasingly profitable? How is gross profit and net income changing, Southwest Airlines Co. Consolidated Statement of Income 2015 OPERATING REVENUES Passenger Freight Special revenue adjustment Other Total Operating Revenues OPERATING EXPENSES Salaries, wages, and benefits Fuel and oil Maintenance materials and repair Aircraft rentals Landing fees and other rentals Depreciation and amortization Acquisition and integration Other operating expenses Total operating expenses OPERATING INCOME OTHER EXPENSES (INCOME): Interest expense Capitalized interest Interest income Other (gains) losses, net Total other expenses (income) INCOME BEFORE INCOME TAXE PROVISION FOR INCOME TAXE NET INCOME NET INCOME PER SHARE, BASI NET INCOME PER SHARE, DILUTED Cash dividends declared per common share 18,299 Percent 2014 17658 175 179 172 1170 19,820 772 18,605 6383 3616 1005 238 1166 1005 39 2242 15,704 5404 5293 978 295 1111 938 126 2205 16380 4116 2225 121 (3) (9) 556 637 130 (23) (7) 309 409 3479 1298 2181 3.50 1816 680 1136 1.65 3.27 1.64 .2850 .2200 Percent and net income changing, as a dollar value