pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. PI8- for a recent year: ns Inc. and Shaw Communications Inc. Evaluate ratios. (LO 4,5,6) AN Rogers Shaw 0.48:1 0.36:1 0.81:1 8.3 times 10.7 times 0.95:1 Liquidity Current ratio Acid-test ratio Receivables turnover Solvency Debt to total assets Interest coverage Profitability Profit margin Asset turnover Return on assets Return on equity 79.3% 3.3 times 63.7% 5.5 times 10.4% 0.5 times 5.4% 26.4% 16.9% 0.4 times 6.8% 19.0% Instructions (a) Which company is more liquid? Explain. (b) Which company is more solvent? Explain. (c) Which company is more profitable? Explain. TAKING IT FURTHER Rogers' price-earnings ratio is 17.4 times, compared with Shaw's price-earnings ratio of 13.7 times. Which company do investors favour? Is your answer consistent with your analysis of the two compa. nies' profitability in part (c)