The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook and others have not, but their names explain how the ratio was computed. These data are for the companies’ 2016 fiscal years. The four sets of ratios, presented randomly, are as follows.

The four companies to which these ratios relate are: Molson Coors Brewing Company, a company that produces beer and related products. Darden Restaurants, Inc., which operates approximately 2,150 restaurants under 10 different names, including Olive Garden, Bahama Breeze, and LongHorn Steakhouse. Deere & Company, a company that manufactures heavy construction equipment. Weight Watchers International, Inc., a company that provides weight loss services and products. Its fiscal year-end was December 31, 2016, during which 81 percent of its revenues came from services and 19 percent from product sales.

Required

Determine which company should be matched with each set of ratios. Write a memorandum explaining the rationale for your decisions.

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Company 1 Company 2 Company 3 Company 4 Current assets - Total assets 7% 18% 31% 19% Average days to sell inventory Average days to collect receivables 72 days 60 days 7% 12 days 3 days 8% 163 days 47 days 3% 108 days 9 days Return-on-assets 5% Gross margin Sales + Property, plant, and equipment Sales - Number of full-time employees 39% 22% 22% 50% 1.1 times 3.4 times 4.5 times 23.5 times $279,980 $46,350 $397,743 $64,717