Question - Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below.
|
Total Liabilities, December 31, 2010
|
$5,039
|
$9,526
|
|
Total Liabilities, December 31, 2009
|
5,003
|
8,815
|
|
Total Assets, December 31, 2010
|
6,593
|
15,463
|
|
Total Assets, December 31, 2009
|
6,549
|
14,269
|
|
Revenue, 2010
|
3,779
|
12,104
|
|
Net Income, 2010
|
197
|
559
|
Required -
a. Compute the return on equity ratio for JetBlue and Southwest for 2010. Which company earned the higher return for its shareholders?
b. Compute the debt-to-equity ratio for each company as of December 31, 2010.
c. For each firm, compute net income as a percentage of revenue in 2010.