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92 1.51 The following ratios are provided for two competitors in the manufacturing industry: Financial Ratio | ABC Company XYZ Company Current ratio (times) Inventory
92 1.51 The following ratios are provided for two competitors in the manufacturing industry: Financial Ratio | ABC Company XYZ Company Current ratio (times) Inventory Turnover ratio (times) 4.75 4.00 Debt ratio (% of Assets) 76.02 51.21 Times Interest Earned (times) 12.31 17.28 Gross Profit Margin (%) 43.08 43.11 Return on Assets (%) 9.77 4.63 Based on the data above, which of the following statements is true: XYZ Company holds its inventory longer than ABC Company. XYZ Company does a better job of managing its inventories than ABC Company. Both companies hold their inventory for the same length of time. Not enough information is given to comment on the companies' relative inventory management
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