mswann1954
Oct 15, 2008, 03:55 PM
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.
Between the comparison of the market capitalization to revenue ratio for American Airlines and British Airways and the comparison of the enterprise value – to revenue ratio for American Airlines and British Airways, which of these comparisons is more meaningful? Explain.
Between the comparison of the market capitalization to revenue ratio for American Airlines and British Airways and the comparison of the enterprise value – to revenue ratio for American Airlines and British Airways, which of these comparisons is more meaningful? Explain.