In January 2019, United Airlines (UAL) had a market capitalization of $23.25 billion, debt of $13.16 billion, and cash of $4.18 billion. United Airlines had revenues of $41.49 billion. Southwest Airlines (LUV) had a market capitalization of $27.36 billion, debt of $3.22 billion, cash of $3.52 billion, and revenues of $22.23 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratib) 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 $23.25 billion, debt of $13.16 billion, and cash of $4.18 billion. United Airlines had revenues of $41.49 billion. Southwest Airlines (LUV) had a market capitalization of $27.36 billion, debt of $3.22 billion, cash of $3.52 billion, and revenues of $22.23 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratib) 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
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Transcribed Image Text:In January 2019, United Airlines (UAL) had a market capitalization of $23.25 billion, debt of $13.16 billion, and cash of
$4.18 billion. United Airlines had revenues of $41.49 billion. Southwest Airlines (LUV) had a market capitalization of
$27.36 billion, debt of $3.22 billion, cash of $3.52 billion, and revenues of $22.23 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.)
SEMENT
sho
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