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In: Accounting

Below is data about 2 companies, please analyze the ratios provided and determine which company YOU...

Below is data about 2 companies, please analyze the ratios provided and determine which company YOU think would be a more sound investment. Then give at least THREE reasons why.

Company A Company B

Avg Collection Period 22.1 days 45. 2 days

Inventory Turnover 4.5 3.2

Current Ratio 2.4 1.7

Quick Ratio 1.8 .5

Debt-to -Equity 33% 59%

Gross Profit 42% 45%

Return on Assets 16.3% 15.1%

Return on Equity 18.2% 11.8%

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Expert Solution

Answer is given below with analysis

ekkarill92 answered 5 months ago
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