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Financial Benchmarking as an Airline Competitiveness Assessment Tool

Table 2:

Financial Indicator Symbols Formula (Higgins, 2013)
Capital Structure ratios
Equity to Total Assets E/TA Shareholder’s Equity / Total Assets
Debt to Equity Ratio D/E Debt / Shareholder’s Equity
Net Working Capital to Current Assets NWC/CA Net Working Capital / Current Assets
Liquidity ratios
Current Ratio CL Current Assets / Current Liabilities
Quick Ratio QL (Current Assets – Inventories) / Current Liabilities
Acid Ratio AL (Cash + Cash Equivalent) / Current Assets
Operating Performance or Profitability ratios
Return on Assets ROA Net Profit / Assets
Return on Equity ROE Net profit / Shareholder’s Equity
Return on Sales ROS Operating Profit / Sales
Assets Usage ratios
Ratio of Sales to Current Assets S/CA Sales / Current Assets
Ratio of Sales to Fixed Assets S/LTA Sales / Long-Term Assets
Rate of Equity turnover S/E Sales / Shareholder’s Equity
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