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You are considering investing in the grocery sector and have identified two companies for further analysis. Financial information for the two companies is as follows:

You are considering investing in the grocery sector and have identified two companies for further analysis. Financial information for the two companies is as follows:
(in thousands)
Company
Sheridan
Company
Sunland
Sales
$1.980,00
$1.760.000
Cost of goods sold
1,762.200
1,513,600
Net income
103,000
99.000
Average inventory
151.000
216,000
Average total assets
797.000
766,049
(a) Calculate and compare the following ratios for the two companies: (Round inventory turnover to 2 decimal places, e.g.15.25 and other answers to 1 decimal place, e.g.18.4 or 15.3%.)
i.
i.
ill.
iv.
V.
Return on assets
Gross margin
Profit margin
Inventory turnover
Days to sell inventory
Company Sheridan
Company Sunland
Return on assets
Gross margin
Profit margin
Inventory turnover
Days to sell inventory
%
%
%
times
days
%
%
times
days

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