The following ratios for Kool's Corporation and its competitor Willant's, Inc., were obtained from independent sources. Compare the two companies based on the following ratios:

Required:
1. Which company appears to rely more on debt for financing? Describe the ratio that you used to reach this decision, and explain what the ratio means.
2. Which company appears to use its assets more efficiently? Describe the ratio that you used to reach this decision, and explain what the ratio means.
3. Which company appears to better control its expenses? Describe the ratio that you used to reach this decision, and explain what the ratio means.

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Ratio Kool's 0.240 1.50 5.4% Willant's 0.350 1.39 3.4% Debt-to-assets Asset turnover Net profit margin