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(Basic strategies) You are considering investing in the retail sector and have identified two companies for further analysis. Financial information for the two companies is

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(Basic strategies) You are considering investing in the retail sector and have identified two companies for further analysis. Financial information for the two companies is as follows: (in thousands) Company A Company B Sales $1,307,000 $1,442,000 Cost of goods sold 784,200 966,140 Net income 104,100 63.100 Average inventory 218,900 148,500 Average total assets 805,350 488,161 (a) Calculate and compare the following ratios for the two companies: (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) i. Return on assets ii. Gross margin iii. Profit margin iv. Inventory turnover V. Days to sell inventory Company A Company B Return on assets % % Gross margin % % Profit margin % % Inventory turnover times times Days to sell inventory days days

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