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Company A Company B Company C Days sales in receivables 8.3 days 46.9 days 80.3 days Days sales in inventory 2.3 days 45.8 days 95.8

Company A Company B Company C

Days sales in receivables 8.3 days 46.9 days 80.3 days

Days sales in inventory 2.3 days 45.8 days 95.8 days

Debt to assets ratio 34.8% 77.5% 62.3%

Times interest earned 14.5 times 7.8 times 4.5 times

Gross profit margin 37% 70% 20%

Price/earnings ratio 15 3 18

6) Which company apparently has investors worried about its future (hint: look to the PE ratio)?

A B C

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