Singapore International Airlines can only operate international flights,
Singapore being an island city (area 647.5 km2) at the tip of the Malaysian
peninsula; yet the company has grown in stature to become one of the most
successful airlines globally. This is judged from the various industry awards it has
garnered since its inception in 1972. Now, SIA is the world's second-biggest
airline by market capitalization (common stocks valued at USD 6.8 billion) after
U.S.’s Southwest Airlines (Morningstar, 2005). Its currents assets are valued at
USD 9.2b and current liabilities stands at only USD 2b (Appendix Table A1), which
gives a current ratio of 4.58, way above the rule of thumb standard of 2.0.