scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 4,348
Executive Summary The strategy of Southwest Airlines SWA has remained the same which is to give customers low-cost point-to-point airfare with excellent customer service This simple strategy has resulted in SWA posting profits for 30 consecutive years While other airlines are downsizing SWA is showing slow steady growth This performance is evident throughout their SEC Filings First we will look at SWAs ROI and ROE compared to the rest of the industry Two thousand and one and 2002 were difficult years for the airline industry Most airlines showed negative ROIs and ROEs however SWA posted an average ROI of 1676 for the three years ending in 2002 Likewise they also showed a substantial 1287 growth in ROE during the same period The good news did not stop there If we look at PE Ratios Southwest Airlines also out performed the industry PE Ratios give an indication of the amount over the market price that investors would be willing to purchase the stock This has traditionally been a significant indicator for investors SWA has shown numbers in the 29-46 percent range for the three-year period ending in 2002 Two other economic indicators which SWA exceeds the industry is dividend payout ratios and dividend yields With payout ratios of 27 to 181 and dividend yields of 044 Southwest Airlines should be at the top of the list for investors of airlines On top of all the excellent indicator information SWA posted a 417338000 profits How did they do this when other airlines are losing money SWA was posed with the burden of extra landing fees security costs and personnel cost they were able to handle the costs through a few smart changes They spent money to increase airport facilities increase personnel and increase technology This led to an increased efficiency which resulted in a profit for SWA Southwest Airlines looked good in 2000-2002 and are poised to continue to lead the industry in 2003 and beyond
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA