1. Some ratios/indicators for 2016 and 2015 for Companies A and B are given below:

Days AR = Ending AR/Avg daily sales

Days AP = Ending AP/Avg daily COGS

Days Inventory = Ending Inventory/Avg daily COGS

Cash conversion cycle = Days inventory + days AR days AP

Quick ratio = Quick assets/Current liabilities

Current ratio = Current assets/current liabilities

Total liabilities/total assets = total liabilities/total assets

FCF/debt coming due = FCF/(ST debt + current portion of long term debt)

OCF/Current liabilities= OCF/Current liabilities