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In January 2019, United Airlines (UAL) had a market capitalization of $22.48 billion, debt of $13.41 billion, and cash of $3.93 billion. United Airlines had
In January 2019, United Airlines (UAL) had a market capitalization of $22.48 billion, debt of $13.41 billion, and cash of $3.93 billion. United Airlines had revenues of $41.41 billion. Southwest Airlines (LUV) had a market capitalization of $27.67 billion, debt of $3.23 billion, cash of $3.58 billion, and revenues of S21.95 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 7 (Round to three decimal places.)
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