1. The information below is excerpted from the financial statements of two companies active in the retail industry. Use this information and the proper financial ratio(s) to answer the following questions

(in $ millions) Company A Company B

Net revenues 107958 37296

Net income 3526 1188

Accounts receivable 910 19908

Total current assets 18672 29564

Total assets

Total current liabilities 12708 15370

Total liabilities 26494 32433

Total stockholders equity 14000 4500

Note: 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 the appropriate ratio(s)