Question
($ Millions) JetBlue Airways Southwest Airlines Total liabilities, 2017 $ 4,947 $ 13,973 Total current liabilities, 2017 $ 2,395 $ 6,905 Total liabilities, 2016 $
($ Millions) | JetBlue Airways | Southwest Airlines |
Total liabilities, 2017 | $ 4,947 | $ 13,973 |
Total current liabilities, 2017 | $ 2,395 | $ 6,905 |
Total liabilities, 2016 | $ 5,310 | $ 14,845 |
Total current liabilities, 2016 | $ 2,214 | $ 6,844 |
Total assets, 2017 | $ 9,781 | $ 25,110 |
Total current assets, 2017 | $ 1,206 | $ 4,815 |
Total assets, 2016 | $ 9,323 | $ 23,386 |
Total current assets, 2016 | $ 1,403 | $ 4,498 |
Revenue, 2017 | $ 7,015 | $ 21,171 |
Net income, 2017 | $ 1,147 | $ 3,488 |
(Please show your work so I can learn)
e.) For each company, compute the return on assets ratio (ignore any interest and tax impact just use net income/total average assets) for 2017. Which Company earned the higher return based on its assets?
f.) Based on your answers to questions a - e, compare these two competitors, specifically if you had $10,000, which would you invest in. What might be the cause of any differences in the ratios that you computed?
g.) Name three specific ways/strategies that the companies could improve their current ratio.
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