Ace Ltd. Nice Co. Industry Average Current ratio 0.7:1 0.5:1 1.1:1 Receivables Turnover 8.3 times 9.4 times. 15.2 times Inventory Turnover 5.7 times 26.9 times 65.3 times Debt to Total Assets 63.7% 56% 68.9% Times Interest Earned 4.1 times 3.4 times 3.6 times Gross Profit Margin 81.2% 43.6% 55.8% Profit Margin 11.6% 7.2% 2% Return on Assets 8.7% I 3.9% 1% Return on Shareholder's Equity 32.8% 16.2% 4.6% Price-earnings ratio 17.8 times 24.6 times 26.5 times a) Which company is more liquid? Explain b) Which company is more solvent? Explain. c) Which company is more profitable? Explain. d) Assuming neither company pays out dividends, which company do investors favor? e) Why are diversification and alternative accounting policies considered to be limitations of financial analysis