The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook; others have not, but their names explain how the ratio was computed. The four sets of ratios, presented randomly, are:

The four companies to which these ratios relate, listed in alphabetical order, are:
1. Amheuser Busch Companies, Inc., a company that produces beer and related products. Its fiscal year-end was December 31, 2002.
2. Caterpillar, Inc., a company that manufactures heavy construction equipment. Its fiscal year- end was December 31, 2002.
3. Outback Steakhouse, Inc., which operates over 800 restaurants worldwide, most of them under the name Outback Steakhouse. Its fiscal year-end was December 31, 2002.
4. Weight Watchers International, Inc., a company that provides weight loss services and products. During its fiscal year ending December 28, 2002, 64 percent of its revenues came from meeting fees, and 29 percent came 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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Ratio Company 1 Company 2 Company 3 Company 4 Operating cycle Return on assets 39 days 24% 11 days 27 days 234 days 11% 14% 2% Gross margin 54% 39% 40% 27% Sales Property, plant and equipment 64.8 times 2.6 times 1.6 times 2.9 times Sales Number of full-time employees $21,000 $40,000 $585,000 $284,000