Computing and Interpreting Key Ratios

Assume the data presented below are from the financial statements of JetBlue and Southwest Airlines.

($ millions)	Jet Blue Airways	Southwest Airlines
Total Liabilities, 2013	$4,939	$9,226
Total Liabilities, 2012	5,003	8,815
Total Assets, 2013	6,593	15,463
Total Assets, 2012	6,549	14,269
Revenue, 2013	3,779	12,104
Net Income, 2013	97	459

Required a. Compute the return on equity ratio for JetBlue and Southwest for 2013. (Round your answer to one decimal place.)

JetBlue Airways ___ % Southwest Airlines ____% Which company earned the higher return for its shareholders? Southwest Airlines or Jet Blue Airways b. Compute the debt-to-equity ratio for each company as of December 31, 2013. (Round your answer to one decimal place.) JetBlue Airways ____ Southwest Airlines ____ Which company relies more on creditor financing? Southwest Airlines or Jet Blue Airways c. For each firm, compute net income as a percentage of revenue in 2013. (Round your answer to one decimal place.) JetBlue Airways _____% Southwest Airlines _____%