The following ratios are for four companies in different industries. Some of these ratios have been discussed in the textbook, others have not, but their names explain how the ratio was computed. These data are for the companies’ 2017 fiscal years. The four sets of ratios, presented randomly are:

The four companies to which these ratios relate, listed in alphabetical order, are:

Anheuser-Busch InBev SA/NV is a company that produces beer and related products. 

Caterpillar, inc. is a company that manufactures heavy construction equipment.

Denny’s Corp. operates approximately 1,735 restaurants as of December 27, 2017.

Weight Watchers International, Inc. is a company that provides weight loss services and products.

Its fiscal year-end was December 31, 2017, during which 83 percent of its revenues came from services and 17 percent from product sales.

Required

Determine which company should be matched with each set of ratios. Write a memorandum explaining the rationale for your decisions.

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Ratio Company 1 Company 2 Company 3 Company 4 Current assets - Total assets 17% 13% 10% 47% 19 days 12 days 70 days 118 days Average days to sell inventory Average days to collect receivables 7 days 13% 1 days 12% 42 days 30 days Return-on-assets 4% 1% Gross margin Sales - Property, plant, and equipment Sales + Number of full-time 53% 82% 62% 32% 27.2 times 3.8 times 2.1 times 3.2 times employees $72,611 $59,461 $308,580 $462,012