Southwest Airlines Co. (LUV) reported the following data (in millions) for a recent year: Sales ..........................................$21,171 Operating

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Southwest Airlines Co. (LUV) reported the following data (in millions) for a recent year:

Sales ..........................................$21,171
Operating income ........................4,116
Average total assets ..................24,198
Average stockholders’ equity ......9,436


1. Compute the return on total assets. Round to one decimal place.

2. Compute the return on stockholders’ equity. Round to one decimal place.

3. Compute the profit margin, asset turnover, and financial leverage metrics using the expanded DuPont formula. Round profit margin, asset turnover, and financial leverage to two decimal places. Round return on stockholders’ equity to one decimal place.

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Survey Of Accounting

ISBN: 9780357132593

9th Edition

Authors: Carl S. Warren, Amanda Farmer

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