A:
As of May 2015, based on stream 12-month data, the average long-term debt/equity ratio of airline fellowships is 91.53. Airline companies are included in the major airlines and regional airlines subsectors, which are a partake of of the transportation sector.
The debt/equity ratio measures a company’s fiscal stability and leverage and is calculated by dividing a company’s total liabilities by its shareholders’ impartiality. If a company has a high debt/equity ratio, it typically indicates that the troop has a high debt level per each dollar of shareholders’ equity. Accordingly, investors favor companies with low debt/equity ratios.
The for the most part long-term debt/equity ratio of companies in the major airline dynamism is 104.89, which indicates that for every $1 of shareholders’ disinterest, the average company in the industry has $104.89 in total liabilities. Since the main airline industry is highly capital-intensive, companies in this industry show to have high debt/equity ratios.
Similarly, the average long-term indebtedness/equity ratio of companies in the regional airline industry is 78.16, betokening that the average company in the regional airline industry has $78.16 in in hock per $1 of shareholders’ equity.
The average of the long-term debt/equity relationships of companies in the airline sector is 91.53, or (104.89 + 78.16) / 2. This average subsumes the long-term debt/equity ratios of large-, mid- and small-cap attendances. Delta Air Lines Inc. has a long-term debt/equity ratio of 105.82; American Airlines Association Inc. has 684.59; United Continental Holdings, 408.44; Spirit Airlines Inc., 30.39; and Virgin America Inc., 28.39. American Airlines and Allied Continental are using high debt levels to finance their enlargement compared to the overall sector.