For each set of ratios below, indicate which company has the more favorable ratio Company with Ratio Company A Company B More Favorable Ratio Example Price/earnings ratio 16.7 17.7 Current ratio 2.3 times 1.5 times Quick ratio 1.6 times 1.0 times 26.5 times 29.9 days 1.8 times Accounts receivable turnover 13.2 times Days' sales in inventory 19.7 days 1.5 times Asset turnover Ratio of liabilities to stockholders equity Times interest earned 1.9 .9 2.9 times 3.6 times 3.4% 4.0% Profit margin ratio Return on total assets Return on stockholders' equity 7.4% 6.0% 11 .3% 17.9%