Why are liquidity ratios for utility and fast food companies

Reference no: EM13279058

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.

Reference no: EM13279058

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