1. Compare the fixed asset turnover ratios for Delta Air Lines (see the chapter illustration on page 272), United (FA 7-1), Southwest (FA 7-2), and JetBlue (FA 7-3). Use Year 2 of Delta and JetBlue for your comparison.
See illustration, The fixed asset turnover measures how efficiently a company is generating sales from its property, plant, and equipment. It is computed as follows:

To illustrate, assume the following data (in millions) adapted from recent financial statements for Delta Air Lines are used.

The fixed asset turnover (rounded to two decimal places) for Delta Air Lines is computed as follows:

2. Comment on the results from part(1).

  • CreatedMarch 11, 2014
  • Files Included
Post your question