The following below summarizes the ratios between two company. As a lender, which of the two would you likely to lend your funds, why?

Would you consider becoming an equity holder for either the company, why or why not?

Company A Company B CURRENT RATIO 1.64 0.83 1.95 0.88 ACID TEST RATIO 2.38 2.73 INVENTORY TURNOVER RATIO 40,47 37.09 DAYS SALES IN AVERAGE RECEIVABLES DEBT RATIO 39.19 44.17 NA 7.63 TIMES INTEREST EARNED RATIO 42.86 RETURN ON SHAREHOLDER'S EQUITY 32.53 5.4 13 EARNINGS PER SHARE OF COMMON STOCK Price/Earning Ratio 8.88 8.46 Debit to Equity Ratio 0.64 0.79