18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios. for a recent year: (LO4,5,6) AN Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 Limes Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions (a) Which company is more liquid? Explain. (b) Which company is more solvent? Explain. (c) Which company is more profitable? Explain. TAKING IT FURTHER Rogers' price-earnings ratio is 17.4 times, compared with Shaw's price earnings ratio of 13.7 times. Which company do investors favour? Is your answer consistent with your analysis of the two compa- nies' profitability in part (c)