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Use Southwest Airlines' 2016 Financial Statement Information, Below to Answer

Question 64

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Use Southwest Airlines' 2016 financial statement information, below to answer the following:
a. Calculate Southwest Airlines' return on assets (ROA) for the year ending December 31, 2016.
b. Disaggregate Southwest Airlines' ROA into profit margin (PM) and asset turnover (AT). Explain what each ratio measures.
Use Southwest Airlines' 2016 financial statement information, below to answer the following: a. Calculate Southwest Airlines' return on assets (ROA) for the year ending December 31, 2016. b. Disaggregate Southwest Airlines' ROA into profit margin (PM) and asset turnover (AT). Explain what each ratio measures.

Correct Answer:

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a. Return on Assets = Net income / Avera...

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