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Compare the profitability , solvency, liquidity of the two companies in details using the ratio provided above (use bullet points to discuss each performance ration

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Compare the profitability, solvency, liquidity of the two companies in details using the ratio provided above (use bullet points to discuss each performance ration "profitability, solvency, liquidity")

For instance:

1. Profitability: ..... (profit margin, asset turnover, return on assets, return on ordinary shareholders equity of company A & B)

2. Solvance: .....(Debt to Total Assets and Times Interest Earned of company A & B)

3. liquidity: ......(the current ratio, accounts receivable turnover, and inventory turnover of company A & B)

4. general analysis of which company has best performance and why

Ratios Company A Company B 0.88: 1 Current Ratio 0.91: 1 Account Receivable Turnover (in times) 24.85 times 70.85 times 14.69 days 5.15 days Account Receivable Turnover (in days) Inventory Turnover (in times) Inventory Turnover (in days) Profit Margin 6.14 times 8.08 times 59.45 days 2.72% 45.17 days 3.45% Asset Turnover 1.57 2.34 Return on Assets 4.25% 7.86% Return on Equity 12.02% 19.65% Debt to Assets Ratio 34.89% 26.41% Times Interest Earned 3.76 times 11.33 times

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