Question: In early 2 0 2 2 , United Airlines ( UAL ) had a market capitalization of $ 1 4 . 3 billion, debt of

In early 2022, United Airlines (UAL) had a market capitalization of $14.3 billion, debt of $39.4 billion, and cash of $18.4 billion. United also had annual revenues of $24.6 billion. Southwest Airlines (LUV) had a market capitalization of $26.1 billion, debt of $12.3 billion, cash of $15.5 billion, and annual revenues of $15.8 billion.a. Compare the market-capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines.b. Compare the enterprise-value-to-revenue ratio for United Airlines and Southwest Airlines.c. Which of these comparisons is more meaningful? Explain.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!