Which of these comparisons is more meaningful explain

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1.In January 2009, American Airlines (AMR) had a market capitalization of $1.7 billion, debt of $11.1 billion, and cash of $4.6 billion. American Airlines had revenues of $23.8 billion. British Airways (BABWF) had a market capitalization of $2.2 billion, debt of $4.7 billion, cash of $2.6 billion, and revenues of $13.1 billion.

a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for American Airlines and British Airways.

b. Compare the enterprise value-to-revenue ratio for American Airlines and British Airways.

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

Reference no: EM13343772

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