appendix A

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AppendixA.docx

Appendix A

Southwest Airlines Co. and JetBlue Airways Corp. Financial Ratios (in USD)

Southwest Airlines Co.

Current ratio = Current Assets / Current Liabilities

2016 4,498M/6,844M = 0.66

Debt Ratio = Total Liabilities / Total Assets

2016 14,845M/23,286M = 0.64

Fixed Asset Turnover Ratio = Net sales / Average net fixed assets

2016 20,425M/22,299M = 0.92

Dividend Payout Ratio = Dividends Per Share / EPS Without Non-Recurring Items

2016 0.375/3.55 = 0.11

Operating Margin Ratio = Operating Income/Revenue

2012 877M/17.1B = 5.1%

2013 1.16B/17.7B = 6.5%

2014 1.71B/18.6B = 9.2%

2015 3.5B/19.8B = 19.8%

2016 4.66B/20.4B = 22.8%

Return on Assets Ratio = Net income / Total Assets

2012 421M/18.6B = 2.2%

2013 757M/19.4B = 3.9%

2014 1.14B/20.2B = 5.6%

2015 2.19B/23.3B = 9.4%

2016 2.25B/24.5B= 9.2%

Price/Earnings Ratio = Market price per share / Earnings per share

2012 10.13/.56 = 18.08

2013 18.84/1.05 = 17.94

2014 42.50/1.64 = 25.91

2015 43.18/3.27 = 13.02

2016 59.10/3.55 = 14.08

P/E to Growth Ratio = P/E Ratio/Earnings Growth Rate = 16.64/19 = 0.87

Return on Equity = Net Profit / Equity

2012 421M/6.99B = 6.0%

2013 757M/7.34B = 10%

2014 1.48B/6.78B = 21%

2015 219B/7.36B = 29%

2016 $2.25B/$8.44B = 27%

Price/Book Value Ratio = Stock price per share/ Shareholders’ Equity per Share

2012 18.6B-11.6B/750M = 9.3

2013 19.3B-21.0/710M = 10.3

2014 20.2B-13.4B/687 = 9.9

2015 23.31B-15.96/661M = 11.11

2016 24.77-16.33/627M = 13.46

JetBlue Airways Corp.

Current ratio = Current Assets / Current Liabilities

2016 1,567M/2,223M = 0.70

Debt Ratio = Total Liabilities / Total Assets

2016 5,474M/9,487M = 0.58

Fixed Asset Turnover Ratio = Net sales / Average net fixed assets

2016 6,632M/9,065M = 0.73

Dividend Payout Ratio = Dividends Per Share / EPS Without Non-Recurring Items

2016 JetBlue did not payout any dividends

Operating Margin Ratio = Operating Income / Revenue

2012 365M/4.89B = 7.3%

2013 418M/5.44B = 7.7%

2014 522M/5.82B = 8.9%

2015 1.3B/6.42B = 20%

2016 1.3B/6.63B = 19%

Return on Assets Ratio = Net Income / Total Assets

2012 128M/7.07B = 1.8%

2013 168M/7.35 = 2.3%

2014 401M/7.84B = 5.1%

2015 677M/8.64B = 7.8%

2016 759M/9.49B = 7.9%

Price/Earnings Ratio = Market price per share / Earnings per share

2012 5.57/.40 = $13.90

2013 8.47/.52 = $16.28

2014 15.68/1.19 = $13.17

2015 22.89/1.96 = $11.67

2016 22.25/2.22 = $10.02

P/E to Growth Ratio = P/E Ratio / Earnings Growth Rate = 8.65/19 = 0.45

Return on Equity = Net Profit / Equity

2012 128M/1.89B = 6.7%

2013 168M/2.13B = 7.8%

2014 401M/2.53B = 16%

2015 677M/3.21B = 21%

2016 $759M/$4.01B = 18%

Price/Book Value = Stock price per share / Shareholders’ Equity per Share

2012 7.07B-5.18B/282M = 6.7

2013 7.35B-5.22B/282.7M = 7.5

2014 7.84B-5.31B/294.7M = 8.6

2015 8.64B-5.43B/315.1M = 10.2

2016 9.49B-5.47B/326.5M = 12.3