nick strengths weaknesses

nick strengths weaknesses - Strength -Operational...

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Strength Weakness -Operational performance -Capital Structure -Market leadership -High dependence on passenger revenues -Lower inventory turnover ratio -Low load factor Opportunity Threat -Growing demand for low cost airlines -Growth in freight business -Expanding passenger traffic in Asia Pacific -Increasing fuel prices -Intensifying competition Strengths Operational Performance SWA has been profitable since 1973 (wiki); no other airline has turned profits for so long. More  recently, the company has reported new milestones and continues a strong trend of success.  From 2005 to 2006, revenues grew nearly 20%, largely due to an increase in passenger  revenues. The driving force behind this growth were increases in RPM yield, capacity, and load  factor. Additionally, SWA’s freight and cargo division saw growth as well. Unlike the passenger  business, freight and cargo has low demand elasticity, so rising costs can be largely passed on  to customers. Finally, the firm recognized nearly 30% growth in operating profit and 3% growth  in net income. Capital Structure Southwest has largely financed its growth internally, leaving it nearly debt-free and with billions  of cash in its war chest. To be precise, Southwest has a debt-to-equity ratio of 1.09, a leverage 
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This note was uploaded on 04/11/2008 for the course MATH 126 taught by Professor Brutche during the Spring '08 term at Bowling Green.

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nick strengths weaknesses - Strength -Operational...

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