1.

HW-04

March 5, 2013

1. Use the yahoo.finance.com site to research the stocks of Gol Transportes Aéreos

a. (GOL) and JetBlue Airways Corporation (JBLU). Look in the financial results area

b. to find the key ratios for each airlines Copy the indicated ratios into a spreadsheet

c. and produce the charts described below.

d. Plot the following ratios for both airlines on one column chart: 5-year annual average sales growth rate, 5-year annual average net income growth rate. Which airline is growing faster?

e. Plot the net profit margins for both airlines. How do the airlines’ profit margins compare to each other?

f. Plot the airlines‘ quick ratios on a third chart. Analyze the airlines’ liquidity status.

g. Look at the airlines’ return on equity ratios, both the ones for the current year and the 5-year averages. Compare them to each other to see how the firm’s investments are faring.

h. Record the receivables turnover, inventory turnover, and total asset turnover ratios for the firms and for the industry. How efficiently are the managers using these assets?

i. If you want to add one of the stocks to your portfolio, which one would you choose?

2. Calculate the following ratios for JetBlue for 011 and 2012:

a. current ratio

b. inventory turnover

c. total asset turnover

d. operating profit margin

e. net profit margin

f. debt to equity