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2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Water Way Company about investing in these companies. Which company would be

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2. Compare the companies' performance for 2019 and 2018. Make a recommendation to Water Way Company about investing in these companies. Which company would be a better investment, The Water Company or Zone Life Vests? Base your answer on ability to pay current liabilities, ability to sell merchandise and collect receivables, ability to pay long-term debt, profitability, and attractiveness as an investment. Ratio Year WC ZLV Current 2019 3.01 2.18 Current 2018 3.28 2.19 Ratio Year WC ZLV Cash 2019 0.99 0.72 Cash 2018 1.16 0.61 Ratio Year WC ZLV 2019 3.54 4.48 Inventory turnover Inventory turnover 2018 3.59 4.48 Ratio Year WC ZLV AR turnover 2019 9.66 10.45 AR turnover 2018 9.60 10.21 Ratio Year WC ZLV Gross profit % 2019 39.90 % 26.87 % Ratio Year WC ZLV Gross profit % 2019 39.90 % 26.87 % Gross profit % 2018 39.65 % 26.76 % Ratio Year WC ZLV Debt 2019 33.74 % 59.39 % Debt 2018 31.34 % 62.48 % Ratio Year WC ZLV 2019 0.51 1.46 Debt to equity Debt to equity 2018 0.15 1.67 Ratio Year WC ZLV 2019 2.80 % 4.99 % Profit margin Profit margin 2018 2.65 % 5.33 % Ratio Year WC ZLV Asset turnover 2019 1.46 1.30 AantARA 2010 1C1 12 Ratio Year WC ZLV Asset turnover 2019 1.46 1.30 Asset turnover 2018 1.51 1.23 Ratio Year WC ZLV ROR on common SE 2019 6.08 % 16.65 % ROR on common SE 2018 5.69 % 18.45 % Ratio Year WC ZLV 2019 $ 1.35 $ 2.30 Earnings per share Earnings per share 2018 $ 1.52 $ 2.76 Ratio Waar WC ZLV 2019 15.57 19.97 Pricelearnings Price/earnings 2018 21.97 18.68 Ratio Year WC ZLV Dividend yield 2019 1.86 % 1.11 % Dividend uild 10 14 0/ 001 OZ INILI TUUT LL ROR on common SE 2019 6.08 % 16.65 % ROR on common SE 2018 5.69 % 18.45 % Ratio Year WC ZLV 2019 $ 1.35 $ 2.30 Earnings per share Earnings per share 2018 $ 1.52 $ 2.76 Ratio Year WC ZLV 2019 15.57 19.97 Pricelearnings Pricelearnings 2018 21.97 18.68 Ratio Year WC ZLV 2019 1.86 % 1.11 % Dividend yield Dividend yield 2018 1.14 % 0.81 % Ratio Year WC ZLV 2019 28.89 % 22.17 % Dividend payout Dividend payout 2018 25.00 % 15.22 %

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