The following ratios are available for toolmakers Stanley Black & Decker, Inc. and Snap-On Incorporated, and vency, 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)? Explain.

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Stanley Black & Decker Snap-On Industry Average Liquidity Current ratio Receivables turnover Inventory turnover 1.8:1 8.7 times 6.7 times 6.1 times 4.8 times 2.6:1 7.4 times 3.9 times Debt to total assets Times interest earned 32.9% 3.2 times 45.7% 6.1 times 22.5% 7.6 times Profitability Return on common shareholders' equity Return on assets Profit margin Asset turnover Gross profit margin Price-earnings ratio Payout ratio Dividend yield 4.4% 2.0% 2.4% 0.8 times 35.1% 58.1 times 101.596 1.8% 13.9% 5.2% 70% 0.7 times 45.7% 19.2 times 38.2% 2.0% 4.9% 26% 3.0% 0.9 times 33.3% 33.9 times 17.4% 1.2%