Wanna buy an airline
I spend a lot of time on planes, so I'm a bit more attentive to that industry than perhaps I should be.
Southwest has a Debt to Capital ratio of .43 which means 43% of their total capital is debt. United has a ratio of .78.
Debt to Equity, a measure of how their total liabilities compare to their equity is 1.89 for Southwest and 4.4 for United. Another way to look at that is, for every $1.89 in liabilities Southwest has, they have $1 in Equity. So, United is a great deal more leveraged than Southwest.
Southwest has still been profitable every year for the past 36 years.
US Air is worth less than one new A380..about 1/3 less.
Today's Market Values:
|Market Cap 3/5/09|
|Jet Blue||$ 0.81|
|Air Tran||$ 0.32|
|US Air||$ 0.24|