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SouthwestAirlines

wth Rate - 12.81%DAL - 5-yr Net Revenue Growth Rate - 4.03%Data demonstrates that although the volume is superior to the leader the moment is low, which causes LUV to lag behind. Nevertheless, averaged five-year growth potential rate exceeds the sector and industry rates, which are 8.52% and 9.34% respectively. Net Profit GrowthIncrease1999Increase1998Increase19971996Skywest (SKYW)59.7%13,618Unordinary8,52538.6%43,14331,120SouthWest (LUV)9.5%474,378 36.4%433,43153.3%317,772207,337Delta Air (DAL)N/AN/A17.2%990,000Unordinary845,00074,000SKYW - 5-yr EBITD Growth Rate - 15.81%LUV - 5-yr EBITD Growth Rate - 18.9%DAL - 5-yr EBITD Growth Rate - 14.63%Data demonstrates that although 1998 to 1999 year transition was not the most successful for the company, the overall prediction about the level of Net Profit Growth is optimistic, and promising to pass the industry and sector rates, which are 14.54% and 17.28%, respectively. But, the industry will under perform the S&P500, where the growth is predicted to be 21.39%Current Ratio19991998Skywest (SKYW)3.1044.067SouthWest (LUV)0.620.997Delta Air (DAL)0.710.67Current ratio for the LUV is certainly pushed below the industry average of 0.82, sector average of 1.68, and S&P500 average of 1.59. This is due to the expansion policy that the company is pursuing. It expands the fleet by adding 32 new aircrafts and also having 62 ordered for the consecutive years. Low current ratio limits their borrowing power substantially, where is on the other hand, expansion will surely add overall value to the current operations. What the company may do is shift some of its current liabilities to long-term debt and/or equity.Total Debt to Asset Ratio199919981997Skywest (SKYW)N/A13.47%N/ASouthWest (LUV)49.5%49.2%52%Delta Air (DAL)N/A19.74N/ASince the ratio is constant for the company, it shows the ability to maintain a certain level of debt confidently. Compared to the other companies, Southwest Airlines has a high To...

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