Analysis Please explain why the ratio moved over the last three year (numerator bigger; nominator lower; or
Question:
Analysis
Please explain why the ratio moved over the last three year (numerator bigger; nominator lower; or both, etc) Explain in depth.
Pick a ratio that has a pattern from Delta Airlines and Southwest Airlines, compare both ratios and tell me why we see the changes. Include table or graph to illustrate your explanations
Southwest Airlines | Year | Year | Year |
Account receivable turnover | 2015 | 2016 | 2017 |
Sales/account receivable | 44.05 | 35.74 | 0 |
Current ratio | |||
Current ratio= CA/CL | 0.54 | 0.66 | 0.7 |
Debt to equity ratio | |||
Debt/Equity | 1.9 | 1.76 | 1.41 |
Profit margin in % | |||
Net income/sales | 0.12 | 0.12 | 0.18 |
Return on Investments | |||
(Investment revenue-Investment cost)/Investment Cost % | 0.006 | 0.015 | 0.02 |
Delta Air Lines | Year | Year | Year |
Account receivable turnover | 2015 | 2016 | 2017 |
Sales/account receivable | 20.15 | 19.20 | 17.35 |
Current ratio | |||
Current ratio= CA/CL | 0.52 | 0.49 | 0.42 |
Debt to equity ratio | |||
Debt/Equity | 3.90 | 3.17 | 2.83 |
Profit margin in % | |||
Net income/sales | 11.12 | 11.03 | 8.67 |
Return on Investments | |||
(Investment revenue-Investment cost)/Investment Cost % | 26.02 | 22.63 | 15.40 |
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds