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-/10 (Basic strategies). You are considering investing in the retail sector and have identified two companies for further analysis. Financial information for the two
-/10 (Basic strategies). You are considering investing in the retail sector and have identified two companies for further analysis. Financial information for the two companies is as follows: (in thousands) Company A Company B Sales $1,225,000 $1,369,000 Cost of goods sold 710,500 917,230 Net income 98,700 63,400 Average inventory 221,400 153,200 Average total assets 802,172 515,276 (a) Calculate and compare the following ratios for the two companies: (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) i. Return on assets ii. Gross margin iii. Profit margin iv. Inventory turnover V. Days to sell inventory
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