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

Problem 1PS

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Assume General Motors announced a quarterly profit of $119 million for 4th quarter 2019. Below is a portion of its balance sheet. Conduct a horizontal analysis of the following line items. (Negative answers should be indicated by a minus sign. Round the "percent" answers to the nearest hundredth percent.) 2019 (dollars in millions) 2018 (dollars in millions) Difference % CHG Cash and cash equivalents $ 15,980 $ 15,499 Marketable securities 9,222 16,148 Inventories 13,642 14,324 Goodwill 1,278 Total liabilities and equity $ 103,249 $ 144,603
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