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In January 2022, United Airlines (UAL) had a market capitalization of $14.29 billion, debt of $39.66 billion, and cash of $18.47 billion. United Airlines had
In January 2022, United Airlines (UAL) had a market capitalization of $14.29 billion, debt of $39.66 billion, and cash of $18.47 billion. United Airlines had revenues of $24.74 billion. Southwest Airlines (LUV) had a market capitalization of $26.22 billion, debt of $12.25 billion, cash of $15.33 billion, and revenues of $15.69 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 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.)
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