The above ratios are for four different airline company\'s for year-ended March

Question

The above ratios are for four different airline company's for year-ended March 31, 2013. Based on the price-to-book equity valuation multiples noted below, match the above ratios with the valuation multiples.

2013 A B C D Operating ROA 36.80% 6.30% 4% 28.50% Spread 40.10% 2.00% 0.30% 31.50% Net Financial Leverage -0.18 1.02 3.43 -0.37% = Financial Leverage Gain -7.3% 2.10% 1.1% -11.5% ROE 29.5% 8.40% 5.00% 17.00% Net Income Margin 10.20% 3.10% 2.00% 7.30% Operating WC / Sales -18.90% -16.70% 8.30% -25.40% NLTA / Sales 47.30% 91.30% 166.80% 52.80% Depr & Amort / Sales 5.40% 5.30% 11.60% 5.30% Current Ratio 1.14 0.62 1.16 1.22 Debt-to-Capital 0.36 0.58 0.8 0.35 Net-Debt-to-Net-Capital -0.22 0.5 0.77 -0.58 Interest Coverage 24.31 2.89 1.53 9.98 Dividend Payout Ratio 5.50% n/a n/a 19.40% SGR 27.88% 8.40% 5.00% 13.70%

Explanation / Answer

On the basis of the given PB valuation multiples and ratios, following are the matches,

A - 2.3

B - 1

C - 2.9

D - 1.1

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