Question
Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below. Total Liabilities, December 31, 2010 $5,039 $9,526 Total Liabilities, December 31,
Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below.
Total Liabilities, December 31, 2010 | $5,039 | $9,526 |
Total Liabilities, December 31, 2009 | 5,003 | 8,815 |
Total Assets, December 31, 2010 | 6,593 | 15,463 |
Total Assets, December 31, 2009 | 6,549 | 14,269 |
Revenue, 2010 | 3,779 | 12,104 |
Net Income, 2010 | 197 | 559 |
Required a. Compute the return on equity ratio for JetBlue and Southwest for 2010. (Round your answer to one decimal place.) JetBlue AirwaysAnswer% Southwest AirlinesAnswer% Which company earned the higher return for its shareholders? AnswerSouthwest AirlinesJet Blue Airways b. Compute the debt-to-equity ratio for each company as of December 31, 2010. (Round your answer to one decimal place.) JetBlue AirwaysAnswer Southwest AirlinesAnswer Which company relies more on creditor financing? AnswerSouthwest AirlinesJet Blue Airways c. For each firm, compute net income as a percentage of revenue in 2010. (Round your answer to one decimal place.) JetBlue AirwaysAnswer% Southwest AirlinesAnswer%
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