Based on these ratios what is your advice if another


South Regional CheapO Quality Heavy Duty Electric Burger Software Machinery Current Ratio 0.9 1.4 7.1 3.9 Quick Ratio 0.8 0.9 5.2 2.8 Debt Ratio 71% 50% 0% 36% Net Profit Margin 6.5% 13.2% 26.9% 9.0% o What are the difficulties in comparing the ratios of these companies to one another? o Why are the liquidity ratios for the utility and fast food companies so much different from the software and machinery manufacturing company? o Would it be advisable for the software company to carry the same debt ratio as the utility company? Why or why not? o Make a recommendation to Steven regarding these investment choices. Based on these ratios, what is your advice? If another student makes different suggestions, challenge them to justify their choices.

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Finance Basics: Based on these ratios what is your advice if another
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