Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below. REQUIRED: a. Compute
Question:
Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below.
REQUIRED:
a. Compute the return on equity ratio for JetBlue and Southwest for 2017. Which company earned the higher return for its shareholders?
b. Compute the debt-to-equity ratio for each company as of December 31, 2017. Which company relies more on creditor financing?
c. For each firm, compute net income as a percentage of revenue in 2017.
d. Based on your answers to questions a, b, and c, compare these two competitors. What might be the cause of any differences in the ratios that you computed?
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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