Bankruptcy Risk and Z-Score Analysis Following are selected ratios for JetBlue Airways Corp. for two recent fiscal years. Compute and interpret Altman Z-scores for the company for both years. Is the company’s bankruptcy risk increasing or decreasing over this period?

Ratio 2016 2015 Current ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.604 0.705 Working capital to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.069) (0.104)

Retained earnings to total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.258 0.194 EBIT to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.138 0.141 EBITDA to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.180 0.181 Market value of equity to total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.380 1.342 Sales to total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.699 0.742