The Internal Environment

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U.S. Securities Exchange (SEC) Form 10-K Report
In this exercise, each student will utilize the U.S. Securities Exchange Commission (SEC) website to access and download your selected company’s Form 10-K Corporate Information Report. This annual report (simply referred to as the “10-K” which is the SEC’s form number) must be electronically filled annually by all U.S. publically-traded entities regardless if they are domestic or foreign. Intended for the protection of the public and for providing corporate and financial information to investors, any stakeholder may access and download this important report for free.

1) Complete the PART I – COMPANY INFORMATION section on the form below.

2) Read about the purpose and mission of U.S. Securities & Exchange Commission (SEC).

https://www.sec.gov/Article/whatwedo.html

3) Locate the “Fast Search” field and enter your company’s Ticker Symbol (e.g., Ford = F).

https://www.sec.gov/edgar/searchedgar/companysearch.html

4) Locate “10-K” under the Filings column (left-side of webpage) and SELECT “Documents”.

5) Locate “10-K” under Description and SELECT the *.htm hyperlink shown under “Documents” column.

Example of Ford Motor Company: f1231201710-k.htm

6) From within the 10-K Report, scroll down to the “Table of Contents” section.

NOTE : Use the keyboard shortcut CTRL-F to easily find and navigate to a specific word or phrase within the 10-K Report.

7) Locate “ITEM 6. Selected Financial Data” and navigate within the 10-K to this specific section.

8) The actual “ITEM 6. Selected Financial Data” section will resemble a data table with various columns (by year) containing important company financial information.

9) Complete the PART II – FINANCIAL COMPONENT section using the above referenced financial information for each year provided.

NOTE : New (or acquired) companies may have only listed financial information from the year since going public (or since year of being acquired).

10) Complete the PART III – COMPANY 10-K ANALYSIS & SUMMARY section below based on your review and analysis of the 10-K report information.

11) Using the file name convention of “MGMT 436 – LastName – Module #4”, save your work and upload the file to Canvas.

PART I – COMPANY INFORMATION

Company Name >

Southwest Airlines

Primary Business Classification >

Air Transportation

State Incorporated >

Texas

Year Established >

1972

Ticker Symbol >

S

Analyst (i.e., Student Name) >

PART II – FINANCIAL COMPONENT

SEC Form 10-K Data

2017

2016

2015

2014

INCOME STATEMENT

Total Revenues >

$21,171

$20,425

$19, 820

$18,605

Net Income before taxes (or Loss) >

$3,251

$3,547

$3,479

$ 1,816

BALANCE SHEET

Total Assets >

$25,110

$23,286

$21,312

$19,723

Total Liabilities >

$15, 469

$14,845

$13,954

$12, 948

Equity (Assets – Liabilities) =

$9,641

$8, 441

$7358

$ 6,775

PART III – COMPANY 10-K ANALYSIS & SUMMARY

IN YOUR OWN WORDS and based on various information that you have read in the company’s 10-K report, summarize your findings as to the company’s financial health (i.e., solvency) and strategic financial plan from a historical, current, and future perspective in the space provided below.

NOTE: Do NOT copy and paste directly from the 10-K Report.

LIMIT your analysis to 300 words maximum.

Based on the information available, the company’s financial health is positive and has recorded an increase in profitability over the years. The analysis of the four years establishes that the company continues to grow. I terms of solvency, the company has more assets than liabilities, therefore, Southwest Airlines is capable of paying off all its debts while maintaining a significant profit margin. The significant difference between total revenues and net income shows that the operational costs are high, and may influence the company’s profit margin. However, it maintains a healthy financial status.

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