[solved]What 3 items of important information does the income statement reveal
What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years? southwest airline
What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years? southwest airline
Answer: The majority of revenues come from the sale of passenger tickets. That revenue has grown nicely: up 3.6% in 2015 and 5.6% in 2014. The costs for fuel and oil were down substantially (likely due to oil from fracking). These costs declined from $5.3 billion to $3.6 billion from 2014 to 2105. Salaries and wages were up over 17% from 2014 to 2015. Maintenance was up 2.7% and landing fees were up 4.9%. Both taxes and net income were up 91%. Cash dividends to shareowners were up 29%. Net Income divided by Total Revenues was 11.0% in 2015, up from 4.3% in 2013. All in all, it was a very successful year for the company.
