Tim Gillespie Week 6 Ch 16 Web Excercise

Tim Gillespie Week 6 Ch 16 Web Excercise - 31-Dec-06 Total...

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Tim Gillespie Week 6 Chapter 16 Web Exercise Southwest Airlines DATE 31-Dec-08 31-Dec-07 31-Dec-06 Long-Term Debt $3,498,000.00 $2,050,000.00 $1,567,000.00 Total Stockholders' Equity $4,953,000.00 $6,941,000.00 $6,449,000.00 Ratio 70.62% 29.53% 24.30% DATE 31-Dec-08 31-Dec-07 31-Dec-06 Total Liabilities $9,335,000.00 $9,831,000.00 $7,011,000.00 Total Stockholders' Equity $4,953,000.00 $6,941,000.00 $6,449,000.00 Ratio 188.47% 141.64% 108.71% American Airlines Date 31-Dec-08 31-Dec-07 31-Dec-06 Long-Term Debt $9,001,000.00 $10,093,000.00 $12,041,000.00 Total Stockholders' Equity $(2,935,000.00) $2,657,000.00 $(606,000.00) Ratio -306.68% 379.86% -1986.96% Date 31-Dec-08 31-Dec-07
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Unformatted text preview: 31-Dec-06 Total Liabilities $28,110,000.00 $25,914,000.00 $29,751,000.00 Total Stockholders' Equity $(2,935,000.00) $2,657,000.00 $(606,000.00) Ratio-957.75% 975.31%-4909.41% 9,355,000 9,831,000 7,011,000 According to the ratios calculated above, Southwest Airlines has higher Debt/Equity Ratios for every year except 2007. This could mean that Southwest uses more financing options than American Airlines does. Overall, SWA seems to be much better off than AA because they are actually making money. Also, they are more liquid than what AA is. The stockholders equity helps this portion of it....
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This note was uploaded on 02/25/2012 for the course FINANCE 410 taught by Professor Conway during the Spring '12 term at Regis University.

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