Based on the financial ratios for Company A and Company B below, which company is:

More liquid?

What are the strengths and weakness of each company?

Company A

a. Current ratio	2.9
b. Acid-test ratio	2.6
c. Operating return on assets	0.08
d. Gross profit margin	0.21
e. Operating profit margin	0.13
f. Net profit margin	0.095
g. Total asset turnover	0.61
h. Fixed asset turnover	1.41
i. Times interest earned	19.04
j. Return on equity	0.15
k. P/E ratio	221.01

Company B

Current ratio	4.2
Acid-test ratio	2.5
Operating return on assets	0.027
Gross profit margin	0.3
Operating profit margin	0.05
Net profit margin	0.03
Total asset turnover	0.53
Fixed asset turnover	1.93
Times interest earned	9.95
Return on equity	0.03
P/E ratio	48.22