Assessing and Managing Risk Lamont Lane

Updated Assessment of the Firm Performance and Associated Financial Strategies Financial markets change with time; therefore, it will be appropriate to review the impact of such changes to Southwest Airlines over a given period. In this assessment, the financial performance of the company is the major determinant of its future strategies. It will be significant to evaluate the financial ratios of the firm to establish the impact of its previous strategies. For instance, the company is not performing well in major financial ratios except profitability and inventory turnover. The analysis should assess factors that influence its poor performance in areas such as undesirable debt to credit ratio. The current analysis should recommend the company’s management to avoid taking loans because the firm may not be in a position to settle them in case the creditor comes for payment. However, the same advice may not hold in the following financial year if the company will have improved its debt to equity