Magna International Inc. is Canada's top manufacturer of auto parts and systems. Its top competitor is Dana Holdings Inc. The following information is available for these two competitors and their industry, for a recent year:

Instructions
(a) Comment on the liquidity of the two companies in comparison with each other, and the industry.
(b) Comment on the profitability of the two companies in comparison with each other, and the industry.
(c) It would appear from the above ratios that the inventory turnover ratio may have an impact on the current ratio. Please explain why.

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Industry Avera Magna 12.9 times 1.4:1 11-696 36% Dana 8.2 times 2.2:1 13.5% 3.7% Inventory turnover Current ratio Gross profit margin Profit margin 9.0 times 1.5:1 17.2% 4.6%