An analyst decides to compare the information obtained from companies A and B. In addition, he has managed to accumulate this other information from the two companies:

Company A has the following behavior:

Your inventory turns over every 80 days and the average collection period is 30 days.

Your sales are: 40% cash and 60% credit.

Company B has the following behavior:

Inventory turns over every 35 days and the average collection period is 90 days.

Your sales are: 30% credit and 70% cash.

The raw materials market has an average monthly increase in prices of 5% and the nominal interest rate on bank loans is 36% per year Likewise, suppliers give an average of 60 days to pay off their accounts.

Which of the two companies has a better solvency position (ability to meet its obligations) and why?