In early 2015, United Airlines (UAL) had a market capitalization of $25.09 billion, debt of $12.74 billion, and cash of $5.56 billion. United Airlines had revenues of $38.67 billion. Southwest Airlines (LUV) had a market capitalization of $28.63 billion, debt of $2.73 billion, cash of $3.34 billion, and revenues of $18.42 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.) The market capitalization-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and British Airways. The enterprise value-to-revenue ratio for United Airlines is. (Round to three decimal places.) The enterprise value-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) c. Which of these comparisons is more meaningful? Explain. The measures only the value of the firm's equity. The to revenue ratio cannot be meaningfully compared when the firms have different amounts of leverage, as to revenue ratio is therefore more useful when firm's leverage is quite different, as it is here