Homework Help is Here – Start Your Trial Now!
Business
Finance
In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of  $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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 The market capitalization-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.) Part 2 The market capitalization-to-revenue ratio for Southwest Airlines is enter your response here . (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. The enterprise value-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.)

In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of  $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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 The market capitalization-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.) Part 2 The market capitalization-to-revenue ratio for Southwest Airlines is enter your response here . (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. The enterprise value-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter11: Investment Planning
Section: Chapter Questions
Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...
See similar textbooks
icon
Related questions
Question
100%
In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of  $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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 The market capitalization-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.) Part 2 The market capitalization-to-revenue ratio for Southwest Airlines is enter your response here . (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. The enterprise value-to-revenue ratio for United Airlines is enter your response here . (Round to three decimal places.) Part 4 The enterprise value-to-revenue ratio for Southwest Airlines is enter your response here . (Round to three decimal places.) Part 5 c. Which of these comparisons is more meaningful? Explain.  (Select all the choices that apply.)
In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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. lior c. Which of these comparisons is more meaningful? Explain. sale wes 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 three decimal places.) The market capitalization-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. -sale The enterprise value-to-revenue ratio for United Airlines is (Round to three decimal places.) The enterprise value-to-revenue ratio for Southwest Airlines is spon c. Which of these comparisons is more meaningful? Explain. (Select all the choices that apply.) (Round to three decimal places.) O A. You cannot meaningfully compare the market capitalization-to-revenue ratio when firms have different amounts of leverage, as market capitalization measures only the value of a firm's equity. O B. You cannot meaningfully compare the enterprise value-to-revenue ratio when firms have different amounts of leverage, as enterprise value measures only the value of a firm's equity. ur res O C. The market capitalization-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. O D. The enterprise value-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. uthwes
Transcribed Image Text:In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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. lior c. Which of these comparisons is more meaningful? Explain. sale wes 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 three decimal places.) The market capitalization-to-revenue ratio for Southwest Airlines is (Round to three decimal places.) b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. -sale The enterprise value-to-revenue ratio for United Airlines is (Round to three decimal places.) The enterprise value-to-revenue ratio for Southwest Airlines is spon c. Which of these comparisons is more meaningful? Explain. (Select all the choices that apply.) (Round to three decimal places.) O A. You cannot meaningfully compare the market capitalization-to-revenue ratio when firms have different amounts of leverage, as market capitalization measures only the value of a firm's equity. O B. You cannot meaningfully compare the enterprise value-to-revenue ratio when firms have different amounts of leverage, as enterprise value measures only the value of a firm's equity. ur res O C. The market capitalization-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. O D. The enterprise value-to-revenue ratio is more useful when the leverage of firms is quite different, as it is here. uthwes
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
SEE MORE TEXTBOOKS