In January 2019, United Airlines (UAL) had a market capitalization of $22.73 billion, debt of $13.63 billion, and cash of $3.81 billion. United Airlines had revenues of $40.87 billion. Southwest Airlines (LUV) had a market capitalization of $27.48 billion, debt of $3.48 billion, cash of $3.65 billion, and revenues of $21.72 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is ______. (Round to three decimal places.)
In January 2019, United Airlines (UAL) had a market capitalization of $22.73 billion, debt of $13.63 billion, and cash of $3.81 billion. United Airlines had revenues of $40.87 billion. Southwest Airlines (LUV) had a market capitalization of $27.48 billion, debt of $3.48 billion, cash of $3.65 billion, and revenues of $21.72 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is ______. (Round to three decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%
In January 2019, United Airlines (UAL) had a market capitalization of $22.73 billion, debt of $13.63 billion, and cash of $3.81 billion. United Airlines had revenues of $40.87 billion. Southwest Airlines (LUV) had a market capitalization of $27.48 billion, debt of $3.48 billion, cash of $3.65 billion, and revenues of $21.72 billion.
a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines.
b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines.
c. Which of these comparisons is more meaningful? Explain.
a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines.
The market capitalization-to-revenue ratio for United Airlines is ______. (Round to three decimal places.)
Transcribed Image Text:In January 2019, United Airlines (UAL) had a market capitalization of $22.73 billion, debt of $13.63 billion, and cash of $3.81 billion. United Airlines had revenues of
$40.87 billion. Southwest Airlines (LUV) had a market capitalization of $27.48 billion, debt of $3.48 billion, cash of $3.65 billion, and revenues of $21.72 billion.
a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines.
b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines.
c. Which of these comparisons is more meaningful? Explain.
a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines.
The market capitalization-to-revenue ratio for United Airlines is (Round to three decimal places.)
Expert Solution
Given:
Here,
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education