Understanding Southwest's Financial Statements - Twelve Months Trailing

[floridaguy]

To better understand Southwest's finances, I've simplified the amounts and removed a lot of zeros to take these down to numbers that most can appreciate.  So, here goes:

Total Revenues -    $22,693

Production Costs - $18,069

Net Revenue -        $  4,624

Expenses -               $  3,027

Operating Income  $  1,597

Other Items              $     507-

Net Income              $  1,090

So, if you had a small business with sales of $22,693, you would have earned $1,090 and then paid tax on that number.  Not exactly a windfall.

In addition, they had $15,504 in cash and equivalents.  So, if you ran your small business since 1974 and had only $15,504 in cash and equivalents, would you call yourself successful?

[dfwskier]

Wow, how naive can you get. But we expect that from you nowadays.

Ya think the airline might have used some of that cash to buy some of the 771 planes the airline flies?

Lets see now, a new 737 retails for over $100 million. 

[dfwskier]

As of last year  Southwest had ordered 307 737  MAXs, and had options on another 226 of them.

Lets see now 533 planes at $100 million a pop costs ...

Can any financial experts out there help floridaguy come up with a number?

[floridaguy]

The planes were not paid for in cash, there are long-term debt obligations and money from shareholders.

Using the number format that I previously used, excluding three trailing zeros, the net worth of the company is $10,414.

Also, when you compare company assets to liabilities, for every $1 in assets there is about $0.71 in liabilities.

So, if your small business had $36,320, of that total $25,906 was debt to acquire those assets.

Not exactly a Microsoft or Apple model.

[SWAnotherWokeCo]

To be fair, Apple and MS use forced labor to benefit their bottom line.