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In January 2019, United Airlines (UAL) had a market capitalization of $22.65 billion, debt of $13.49 billion, and cash of $4.18 billion. United Airlines had
In January 2019, United Airlines (UAL) had a market capitalization of $22.65 billion, debt of $13.49 billion, and cash of $4.18 billion. United Airlines had revenues of $40.85 billion. Southwest Airlines (LUV) had a market capitalization of $27.66 billion, debt of $3.36 billion, cash of $3.66 billion, and revenues of $22.29 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
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