Compare the market capitalization to revenue ratio

Assignment Help Finance Basics

Reference no: EM1357200

In July 2005, American Airlines (AMR) had a market capitalization of $2.3 billion, debt of $14.3 billion, and cash of $3.1 billion. American Airlines had revenues of $18.9 billion. British Airways (BAB) had a market capitalization of $5.2 billion, debt of $8.0 billion, cash of $2.9 billion, and revenues of $13.6 billion.

a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for AMR and BAB.

b. Compare the enterprise value-to-revenue ratio for AMR and BAB.

c. Compare the debt/capital ratio (d/d+e) for on-book and market.

d. Which of these comparisons is more meaningful? Explain.

Reference no: EM1357200

Questions Cloud

Define teaching job filed a lawsuit challenging the legality : Explain a white employee who wasn't hired for a teaching job filed a lawsuit challenging the legality of the affirmative action plan

Illustrate what is the price elasticity at the average value : Assume the average value of P is $ 3 and the average value of Po is $ 6. Illustrate what is the price elasticity at the average values of P and Po.

What is the time interval it took to hit the box : The leg and cast weigh 200 N, with the center of mass as indicated by the blue arrow. The counterbalance w1 weighs 110 N. find out the weight w2 and the angle α needed so that no force is exerted on the hip joint by the leg plus cast.

Explain about relational leadership : Based on research from literature, what strategies do effective leaders use to build relationships? How do these strategies impact an organization's success?

Compare the market capitalization to revenue ratio : American Airlines had a market capitalization of $2.3 billion, debt of $14.3 billion, and cash of $3.1 billion. American Airlines had revenues of $18.9 billion.

Explain why is economics to an understanding of the problem : Explain why is economics to an understanding of the problem of development. Why is an understanding of development crucial to policy formulation in developing nations.

Trends in organizational behavior : Prepare a 750-1,050-word paper evaluating the following trends in organizational behavior:

Different entry strategies : Provide the circumstances under which each company chose its strategy. Provide information on how the two companies chosen strategies have affected performance and contributed to success or failure.

Create crow-s foot erd for business rules for company : Create Crow's Foot ERD to include the following business rules for the ProdCo company: Each sales representative writes many invoices

User Account

All Pages