Alaska Air Group (ALK), Delta Air Lines (DAL), and Southwest Airlines (LUV) reported the following financial information (in millions) in a recent year a Determine the fixed asset turnover ratio for each airline Round to one decimal place b Based on the fixed asset turnover ratio, which airline app...

a b Delta Air Lines has the largest fixed asset turnover ratio and thus is more efficient in u ...

Alaska Air Group (ALK), Delta Air Lines (DAL), and Southwest Airlines (LUV) reported the following financial information

Question:

Alaska Air Group (ALK), Delta Air Lines (DAL), and Southwest Airlines (LUV) reported the following financial information (in millions) in a recent year:

Alaska Air Group Delta Air Lines Southwest Airlines $5,931 5,234 $39,639 23,707 Sales Average book value of fixed assets

a. Determine the fixed asset turnover ratio for each airline. Round to one decimal place.
b. Based on the fixed asset turnover ratio, which airline appears to be the most efficient in the use of its fixed assets?
c. The most important fixed asset to an airline is the aircraft. Given this, what factors might influence the efficient use of fixed assets for an airline?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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