Future Outlook and Opportunities

Running head: AVIATION MANAGEMENT
Aviation Management
Name of the Student:
Name of the University:
Author’s Note:

AVIATION MANAGEMENT1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Financial Analysis.......................................................................................................................2
Future Outlook and Opportunities...............................................................................................6
Risk Management........................................................................................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendix........................................................................................................................................13

AVIATION MANAGEMENT2
Introduction
The financial analysis has been done for the Southwest Airlines Entity that is a major
American Airlines that is headquartered in Dallas, Texas and the entity is now said to be the
world’s largest low-cost carrier that is operating in the Aviation Sector. The financial analysis
has been done for the Southwest Airline Entity for the year 2018 whereby the profitability and
financial performance for the evaluated entity has been well done. In order to well analyze the
financial performance of the entity has been well analyzed over a period of time. In order to
better understand the business opportunities available with the entity the business operations has
been well evaluated for the stated entity. Risks are an important constraints for the entity it is
equally important to identify the major risks that would be potentially affecting the business
operations of the entity.
Discussion
Financial Analysis
The financial analysis has been done for the entity with the help of ratio analysis an
quantitative assessment tool in order to determine the performance and operations of the entity in
terms of liquidity, profitability, asset management and financial risk that is associated with the
bank (Investors.southwest.com 2019).
Liquidity Ratio: In order to well analyse the liquidity position or the ability of the evaluated
entity for meeting up the reported current obligations. The current ratio has been calculated. The
current ratio of the entity has been around 0.64 times in the year 2018 and the same can be well

AVIATION MANAGEMENT3
said to be too low as compared to the current liabilities reflected in the books of account for the
entity (Annual Report 2019). A graphical analysis of the liquidity ratio can be well shown below:
2014 2015 2016 2017 2018
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80 0.74
0.54
0.66 0.70 0.64
Current Ratio
Profitability Analysis: The profitability aspect of the entity can be well evaluated with the help
of net profit margin and return generated on shareholder’s equity.
Net Profit Margin: The net profit margin for the entity was around 11.22% and on an average in
the five-year time period the same has remained somewhat to around 11.16% on an average in
the five-year time period (Macrotrends.net 2019). The sustainable growth in the net profit for
the entity can be well contributed or related to the rise in the revenue figure for the entity.
2014 2015 2016 2017 2018
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
6.11%
11.00% 10.99%
16.48%
11.22%
Net Profi t Ratio