Which company, South west or UAL, would you expect to have the higher debt ratio? Compute the 2 companies’ debt ratios to confirm your opinion. Summarized balance sheets follow at December 31, 2006.
|
Millions |
||
|
Southwest |
UAL |
|
|
Total assets |
$13,460 |
$25,369 |
|
Total liabilities |
$ 7,011 |
$23,221 |
|
Stockholders’ equity |
6,449 |
2,148 |
|
Total liabilities and equity |
$13,460 |
$25,369 |