Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers the lowest and simplest fares. About Financials Ratios Financial ratios are generally ratios of selected values on an enterprise's financial statements. Activity Ratios: Both Southwest and JetBlue had increasing fixed asset turnovers for each of the three years calculated. Using only Boeing 737s simple design, competitive fuel economy , and shuttling back and forth between cities to again minimize downtime, Southwest maximizes revenue. The higher this ratio is, the better.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses. Gross Profit Margin Inconsistent, Lower than the industry average, Lower than jetblue Slightly increasing from 2011-2013 Net Profit Margin Inconsistent Half of industry average. . Improved approaches to composition and construction of aircraft were driven forward throughout both World Wars by demand and government. JetBlue hedged 21% of its fuel last year.
Financial analysis of Southwest Airlines involves more than just checking the , by looking at the financial statements of the company in detail. If a company has a debt ratio greater than 100, it indicates that the company has as much debt as assets. For JetBlue, that number is not merely large but trending upward. Past performance is a poor indicator of future performance. To view Intraday Stock Data Java must be installed. Data for this Date Range Dec. Southwest operates over Boeing 737 aircraft in numerous cities.
Intraday data delayed 15 minutes for Nasdaq, and other exchanges. An improving bottomline implies that the company is growing its profits. Regional flights stay local to one area. Low values, however, do not indicate a critical problem. The company's liquidity has decreased from the same period last year. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Having a higher profit margin is preferred so JetBlue was better than Southwest overall.
It indicates that the company may have difficulty meeting its current obligations. The income statement is also called statement of revenue and expense. It has affected every part of the way individuals function, including conducting business, visiting family and friends, and any number of other reasons people have to move from one place to another quickly. This generally means that Southwest is more effective in generating revenues from their investment in property, plant and equipment. Southwest has the best activity ratio's overall. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
The airline originally based itself out of Love Field rather than the larger and newer Dallas-Fort Worth International to comply with a blatantly pointed law called the Wright Amendment. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events, or developments, except as required by federal securities laws. Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios. As of 2015, traveling by air is a household concept. The gurus listed in this website are not affiliated with GuruFocus.
Jet Blue seems to be better at managing their debt. Finance - Business Finance, Stock Market, Quotes, News. Security analysts use financial ratios to compare the strengths and weaknesses of various companies. Financial ratios allow for comparisons between companies, between industries and also between a single company and its industry average or peer group average. One inevitable unintended consequence was that Dallas-Fort Worth International ended up operating beyond its capacity. If Southwest Airlines Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
Southwest Airlines Co's current ratio for the quarter that ended in Dec. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. For investors, it is important to know where to allocate money. International flights generally carry more than 130 passengers from one country to another. Southwest Airlines Financial Analysis Ratio Analysis: Liquidity Both Current and Quick Ratios are inconsistent over the past 6 years Cross-Sectional analysis shows Southwest is well below the industry average for both ratios Ratios show no durable competitive advantage Activity Ratios Activity ratios are not available for the airline industry The activity of a company can be measured by inventory turnover and average collection period Airline companies carry very little inventory because they are a service industry Transactions are immediate Ratio Analysis: Profitability Conclusions The airline was established in 1967, headquartered in Dallas, Texas.
In no event shall GuruFocus. Which makes sense — capital and labor expenses are huge, and competition fierce. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The amendment forbade commercial airliners from flying into and out of the latter, unless said flights connected in Texas or an adjacent state. Rising prices have , especially for JetBlue in its nascence.