Develop a horizontal analysis, vertical analysis, and the following ratios for MFA FINANCIAL INC and ELLINGTON FINANCIAL INC.: current ratio, cash ratio, acid-test ratio, inventory turnover ratio, days' sales in inventory ratio, days' sales in receivables, and the gross profit percentage (if you feel that additional ratios will support your findings in relation to the overall financial state of the company feel free to include them in your analysis).

Discuss the overall financial state of your chosen company as well as the financial state of their competitor including some key differences between the companies and recommendations for making improvements within your chosen company.