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The table below compares the debt situation among the three airlines companies. What can you infer about the debt situation of each company based on
The table below compares the debt situation among the three airlines companies. What can you infer about the debt situation of each company based on ratio analysis? Debt- to- Interest Current Company equity coverage ratio ratio US Airways 3,044% 0.8 0.7 Southwest 54.5% 4.5 1.0 1.0 United 705.1% 2.5 A. US airways uses a large percentage of debt relative to equity but is still able to meet its short-term obligations. B. A current ratio of 1.0 indicates that a company is just about brining enough revenues to make its interest payments. C. Southwest generates enough earnings to cover its interest payments. D. All of the above. Reset Selection
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