RatioASDATescoInterpretation

Current ratio1.63 :1 0.87 :1 ..................................

Accounts receivable turnover8.69 Times 101.41 Times ..................................

Average collection period42 Days 3.59 Days ..................................

Inventory turnover ratio6.57 Times9.0 Times ..................................

Days in inventory55.55 Days40.55 Days ..................................

Current Cash Debt Coverage ratio 0.54 Times0.47 Times ..................................

Profit margin3.81% 3.51% ..................................

Asset turnover1.47 Times2.44 Times ..................................

Return on assets5.6%8.6% ..................................

Return on common stockholders' equity17.12% 20.97% ..................................

Debt to assets ratio65.54%58.38% ..................................

Time interest ratio6.48 Times 11.39 Times..................................

Cash Debt Coverage ratio0.20 Times0.27 Times ..................................

Free cash flow$ 3656 $9848..................................

1-State which company you think is better in short-term and why (Interpretation) and under the assumption that each company's stock can be purchased at book value, state which company's stock you think is better to invest and why (Interpretation).

2-Compare the Solvency, Liquidity and Profitability for the two companies