You are an analyst following two companies, Company X and Company Y. You have collected the following information:
-The two companies have the same total assets.
-Company X has a higher total assets turnover than Company Y.
-Company X has a higher profit margin than Company Y.
-Company Y has a higher inventory turnover ratio than Company X.
-Company Y has a higher current ratio than Company X.
Which of the following statements is most correct?
a. Company X must have a higher net income.
b. Company X must have a higher ROE.
c. Company Y must have a higher quick ratio.
d. Statements a and b are correct.
e. Statements a and c are correct.
e. Company X must have a higher net income.
This is because of higher ...
The solution compares company X and Y on various financial aspects.