The following ratios are available for fast-food competitors McDonald's Corporation and Burger King Holdings, Inc., 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 (a) to (c)?

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McDonald's Burger King Industry Average Current ratio Receivables turnover 21.5 times 133.6 times 54.8 times 33.2 times 3 Debt to total assets Times interest earned 11.4 times Return on common shareholders' equity Profit margin Asset turnover Gross profit margin 1.2 times 17.6 times 19.9 times Dividend yield