Use the ratios calculated below  for Company A and Company B to answer the following questions.

 

According to the Cash Collection Period, which  Company is more liquid?

Which Company   sells their inventory more quickly?

Which Company   collects their receivables more quickly?

Which Company  pays their suppliers more quickly?

Asset Management Asset turnover Receivable turnover Receivable collection period Inventory turnover Inventory on hand period PPE turnover Liquidity Cash and marketable securities to total assets Quick ratio Current ratio Accounts payable turnover Days' payable period Cash collection period Operating funds ratio Op Cash Flow to Cur. Liab. Company Company A B 1.872 1.917 44.154 95.621 8.266 3.817 5.248 3.707 69.551 98.466 4.308 3.898 0.112 1.229 7.518 48.548 29.270 1.464 0.813 0.111 1.192 5.515 66.183 36.100 1.894 0.590