In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40...

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In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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 CEO a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines In January 2019, United Airlines (UAL) had a market capitalization of $22.90 billion, debt of $13.40 billion, and cash of $4.00 billion. United Airlines had revenues of $41.30 billion. Southwest Airlines (LUV) had a market capitalization of $27.50 billion, debt of $3.40 billion, cash of $3.70 billion, and revenues of $22.00 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 CEO a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines

Answer rating: 100% (QA)

a Market capitalization to revenue ratio of United Airlines is computed as follows Market c... View the full answer