I-Hui's Blog

Business Strategic Research

Overview three years income statements of Southwest Airlines, Delta Air Lines, and Amerrican Airlines

The following financial statements were used in evaluating the efficiency within Southwest and its competitors. The structure of revenues and expenses presents the effectiveness of each year’s financial health and the result of their strategic policies. The information contained in this section was taken from the company’s annual reports, online databases, recent activity and other […]

Organizational Structure Analysis for Southwest Airlines Co.

According to Hoover’s Company Records, we know Southwest Airlines Co. (Southwest) is a passenger airline that provides scheduled air transportation in the United States. On September 26, 2010, the Company entered into a merger agreement providing for the Company’s acquisition of AirTran Holdings, Inc. (AirTran). In November 2010, the Company terminated its agreement with WestJet […]

How is Southwest performed in Domestic Airlines industry?

The Domestic Airlines industry is classified as having a medium level of concentration. IBISWorld believes that the top four industry players in this industry held a combined market share of around 50.5% in 2011. The most significant recent industry mergers were in 2008 when Delta Air Lines and Northwest Airlines merged and in 2010 when […]

DuPont Analysis for Southwest Airlines Co. (2008-2010)

DuPont analysis is an expression which breaks ROE (Return on Equity) into three parts. Basic formula is as listed below: ROA = (Net profit/Sales)*(Sales/Assets) = Net profit/Assets ROE = (Net Profit/Equity) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity) = (Profit margin)*(Asset turnover)*(Equity multiplier) · Profitability (measured by Profit Margin=Net profit/Sales) · Operating efficiency (measured by Asset Turnover=Sales/Total Assets) · […]

Self made Southwest Airlines Videos

Related articles Going Green: It’s Electric, Southwest! (blogsouthwest.com)

HHI Analysis – an Indicator of Monopoly or Fragmented Industry

The Herfindahl index (also known as Herfindahl–Hirschman Index, or HHI) is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them. It is an economic concept widely applied in competition law, antitrust and also technology management. It is defined as the sum of […]

Altman Z-Score Analysis – Are they going to bankrupt?

Altman Z-Score is a predictive model created by Edward Altman in the 1960s. This model combines five different financial ratios, each assigned a different weight, to determine the likelihood of bankruptcy amongst companies.  The Z-score formula has three different weighted value type below: 1) Publicly Held Firm Financial Ratios T1 = Working Capital / Total Assets […]

Tobin’s q Analysis – Should investors buy their stocks?

The Tobin’s q was examined as an indicator of the firm’s effectiveness from an investment perspective across a variety of top management games. It was developed by James Tobin (Tobin 1969) as the ratio between the market value and replacement value of the same physical asset: First, the numerator is the market valuation: the going […]

Southwest Airlines Co. SWOT Analysis

What is SWOT Analysis? (Wikipedia) SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Setting the objective should be done after […]