Base your answers to the following questions on the financial statements of Westjet Airlines Ltd. in Exhibit 2-14. (Calgary-based Westjet, known for its corporate culture and providing customers with a user-friendly travel experience, has grown from a small regional airline to one that provides services throughout Canada and to some international destinations.)
a. Calculate the following ratios for each of the two years presented. (Note that, in order to be able to calculate these ratios for each of the years, you will have to use the total assets for each year and the total shareholders' equity for each year in your ratios, rather than average total assets and average shareholders' equity.)
i. Profit margin ratio (use total revenues)
ii. Return on assets
iii. Return on equity
b. Comment on Westjet's profitability during 2008 and 2009.