Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In January 2022, United Airlines (UAL) had a market capitalization of $13.87 billion, debt of $35.74 billion, and cash of $18.38 billion. United Airlines had

In January 2022, United Airlines (UAL) had a market capitalization of $13.87 billion, debt of $35.74 billion, and cash of $18.38 billion. United Airlines had revenues of $24.17 billion. Southwest Airlines (LUV) had a market capitalization of $26.25 billion, debt of $12.27 billion, cash of $15.72 billion, and revenues of $16.02 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 two decimal places.)
image text in transcribed
In January 2022, United Airlines (UAL) had a market capitalization of $13.87 billion, debt of $35.74 bilion, and cash of $18.38 billion. United Artines had revenues of \$24.17 billion Southwest Airlines (LUV) had a market capitalization of $26.25 bilion, debt of $12.27 bllion, cash of $15.72 bilion, and revenues of $16.02 billion. a. Compare the market capitalization-lo-revenue ratio (also called the price-lo-sales rotio) for United Airlines and Southwest Airlines b. Compare the enterprise value-lo-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 prico-to-sales ratio) for Unitod Airlines and Southwest Arlines. The market capitalization-to-revenue ratio for United Airtines is (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions