- Words: 1068
- Length: 3 Pages
- Topic: Economics
- Paper #: 76249715
Southwest's interest coverage is comfortable, at 3.909. Southwest's operating leverage is high, as they are in a low margin business. They had a negative change in EBIT over the period, as did AMR, despite both having higher sales. Southwest's combined leverage is 1.505, much stronger than AMR, which suffered a huge decline in earnings per share despite having higher sales.
10) the weighted-average cost of capital for Southwest is 0.56%.