Analyzing Ratios (AP13-1) Company X and Company Y are two giants of the retail industry. Both offer full lines of moderately priced merchandise. In the last fiscal year, annual sales for Company X totaled $53 billion and annual sales for Company Y totaled $20 billion. Compare the two companies as a potential investment based on the fol lowing ratios: Ratios for Current Year Company X Company Y P/E 11.0 12.9 Gross profit percentage 28.6 39.3 Net profit margin 2.8 5.7 Current ratio 2.0 1.4. Cash coverage ratio 0.7 2.2 Debt-to-equity 1.4 2.0 Return on equity 12.0 27.8 Return on assets 5.2 9.3 Dividend yield Not applicable 1.4 Earnings per: share $5.17 $5.20