Use Southwest Airlines' 2016 financial statement information,
below to answer the following:Calculate Southwest Airlines’
return on assets (ROA) for the year ending December 31, 2016.Disaggregate Southwest
Airlines' ROA into profit margin (PM) and asset turnover (AT).
Explain what each ratio measures.($
millions)Total operating
revenues$20,425Net income2,244Total assets,
beginning of year21,312Total assets,
end of year23,286Equity, end of
year8,441