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Marlenes Marvelous Adventure Southwest Airlines Financial Analysis Case Study Help


Marlenes Marvelous Adventure Southwest Airlines Financial Analysis Financial Analysis Case Study HelpThe financial position of Marlenes Marvelous Adventure Southwest Airlines Financial Analysis can be evaluated by having a look at its ratio analysis.

Declining Profitability:

The decreasing web profitability, showing a negative pattern from 2006 to 2007 recommends that costs have increased far more than the business is able to handle offered its current resources. With a long term financial obligation including to the interest cost, Marlenes Marvelous Adventure Southwest Airlines Financial Analysis is in alarming need of an alternative revenue stream.

Declining Liquidity:

We can see a significant decreasing pattern in the current ratio too showing a fall in liquidity which is another point of concern for Marlenes Marvelous Adventure Southwest Airlines Financial Analysis specifically as it has a long term financial obligation to pay off too. With the existing possessions not in a position to settle the current liabilities, we can see how the business would remain in a major financial problem unless the capital enhances with extra sources of finance.

Rising Debt to Assets Ratio:

We could check out the financial condition of Marlenes Marvelous Adventure Southwest Airlines Financial Analysis further by looking at the business's total debt to total properties ratio in appendix 2. We can see how the total assets of the business have been declining from 2005 onwards. Nevertheless, the long term debt has remained at $160 million while the short-term financial obligation has increased side by side. Such a circumstance has actually brought Marlenes Marvelous Adventure Southwest Airlines Financial Analysis to a point where its total debt to total possessions ratio has actually increased too. An increasing total debt to total properties ratio recommends that the danger has increased in regards to the business's assets not being enough to cover its overall liabilities. This might not be revealing the overall liquidity position however provides clarity in terms of the overall monetary position of the business.

/Financial Feasibility