What financial ratio(s) (list below) would be used to analyze the following questions when comparing 2 companies:
Current ratio, quick or acid ratio, receivables turnover, collction period, inventory turnover, average days sales in inventory, asset turnover, return on sales, return on assets, return on equity, earnings per share, PE ratio, debt to assets, debt to equity, and times interest earned
Which company would you rather contract with if you are a supplier?
Which company has a stronger management team in terms of efficiently using its resources?
Which company would you invest in if you are an investor?
Which company would you be more apt to loan funds to if you are a banker?