Following financial information is related to Glow Corporation and Blue Corporation:

Glow Corporation Blue Corporation

2001 2000 2001 2000

Current ratios 1.16 .95 2.25 2.17

Working capital $11 ($2) $30 $28

A/R turnover 31.7 times 45 times 30 times 30 times

Inventory Turnover 16.6 times 22.5 times 15 times 15 times

Asset turnover 2.4 times 3.2 times 3.6 times 3.8 times

Total debt to total assets 86.9% 81.7% 14.2% 15.4%

Sh. Equity to total assets 13.1% 18.3% 85.8% 84.6%

Gross margin ratio 30% 33% 25% 25%

Return on sales 10% 11.9% 10% 10%

Return on assets 24.5% 38.5% 35.5% 38.5%

Return on equity 186.3% 210.5% 41.4$ 45.5%

Required: Conduct financial analyses of the two companies on the basis of the above data and deduct which is performing better and why?