The following ratios are available for fast-food competitors and their industry, for a recent year:

Instructions
(a) Which company is more liquid? Explain.
(b) Which company is more solvent? Explain.
(c) Which company is more profitable? Explain.
(d) Which company do investors favour? Is your answer consistent with your findings in parts (a) to (c)?

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Macs Burgers Kings Industry Avera Current ratio Receivables turnover Inventory turnover 21.5 times 33.6 times 35.2 times Debt to total assets Times interest earned 16.5 times 11.4 times 0 0.9 times 1.2 times Return on assets Return on common shareholders equity 19.6 times 17.6 times 19.9 times Dividend yield