how to describe the risk - return tradeoff involved in managing each firm's working capital given the data below? how to describe the problems encountered in managing their working capital?

ARLA FIRM FONTERRA FIRM

CURRENT RATIO AKA WORKING CAPITAL RATIO 1.24 1.16

QUICK RATIO/ ACID TEST RATIO 0.77 0.59

NET WORKING CAPITAL 555.00 832.00

ACCOUNTS RECEIVABLE TURNOVER 11.21 8.78

AGE OF RECEIVABLES 32.56 41.59

NVENTORY TURNOVER 7.69 6.28

AGE OF INVENTORY 47.48 58.14

GROSS PROFIT MARGIN RATIO 0.21 0.15

NET PROFIT MARGIN RATIO 0.03 -0.01

OPERATING MARGIN RATIO 0.04 0.01

RETURN ON TOTAL ASSET 0.06 0.01

RETURN ON EQUITY 0.13 -0.03

TIMES ITEREST EARNED 5.88 0.60

DEBT RATIO 0.65 0.65

EQUITY RATIO 0.35 0.35