(in $ million)	Company A	Company B
Net revenues	117958	41296
Net income	3526	1188
Total current assets	18672.5	29564.5
Total assets	42494	37433
Total current liabilities	12708.5	15370
Total liabilities	24671	32030
Total stockholders equity	17823	5403.5

Footnote: Approximately 98% of Company Bs account receivables are from unpaid balances carried by customers using the store credit card.

Is one company significantly more profitable than the other? Justify using appropriate ratio(s).

Which company creates higher value for its shareholders? Explain using appropriate ratio(s). (Stockholder equity can be used as a proxy for shareholders)

Which company is better positioned to pay its bills in the short-run (i.e., is more liquid and less risky in the short-term)? Justify using appropriate ratio(s).

What are the steps to analyze financial statements strategically? What else do you need to know in order to interpret the financial performance of these companies?

How can you control for size when comparing the financials of the 2 firms from the same industry? Create this statement for company A and B.