1. The table below shows the ratios for four companies: retail jewelry, advertising agency, heavy equipment manufacturer, bank.

Interpret the ratios and briefly discuss why company 1 should be the bank.

A bank does not have inventory, hence, the inventory turnover is not applicable. The current ratio measures the ability of the company to convert their current assets to pay off their current liabilities within a year. A bank does not have current liabilities to pay off compared to the rest.

Company
	1	2	3	4
Debt-equity	9.0	2.0	0.7	1.1
Inventory Turnover	-	2.5	4.0	-
Current Ratio	N.A.	1.6	2.0	1.8
Sales/Total Assets	0.1	1.8	5.0	4.5
Sales/Receivables	2.0	12.0	50.0	9.0