You are a bank loan manager and you have had two companys (Arrow and Root) come to your bank requesting a 6-month loan.

Which company you would approve the loan for based on the details below?

Answer should be in paragraph form and Liquidity, Solvency, and Profitability should all be addressed separately.

Arrow Root Is higher or lower better? Which company is better? 5 Liquidity Working Capital: Current Assets - Current Liabilities $ 1,372 amount $ 910 Jamount Higher Arrow Current Ratio: Current Assets Current Liabilities 1.70 times 1.36 times Higher Arrow Quick Ratio: Cash + Short-term Investments + Accts Receivable Current Liabilities 0.59 times 1.13 times Higher Root Receivable Turnover: Credit Sales Accounts Receivable 4.72 times 5.71 times Higher Root Average Collection Period: 365 Receivable Turnover 77.40 days 63.92 days Lower Root Inventory Turnover: Cost of Goods Sold Inventory 3.92 times 3.69 times Higher Arrow Days in Inventory: 365 93.02 days 98.87 days Lower Arrow Inventory Turnover Solvency Debt to Total Assets: Total Liabilities Total Assets 42.93% percentage 69.09% percentage Lower Arrow Times Interest Earned Profit+Interest Expense+Income Tax Expense Interest Expense 29.94 times 5.42 times Higher Arrow Debt to Total Equity: Total Liabilities Total Equity 75.22% percentage 223.47% percentage Lower Arrow Profitability Profit Margin: Profit Sales 65.45% percentage 13.11% precentage Higher Arrow Return On Assets (ROA): Profit Total Assets 7.94% percentage 2.28% percentage Higher Arrow Asset Turnover: Sales Total Assets 0.12 times 0.17 times Higher Root Page 2 Earnings Per Share: Profit - Preferred Dividends Weighted Average Number of Shares $ 35.80 amount $ 7.04 amount Higher Arrow Price Earnings: Market Price per share EPS 1.26 times 2.84 times Lower Arrow Return on Common Shareholder's Equity Profit - Preferred Dividends Common Shareholder's Equity 15.26% percentage 8.88% percentage Higher Arrow