Alpha Inc. and Beta Co. are competitors in the technology sector. They both released their financial statements for the fiscal year ending on 31st December 2023. Additionally, they operate in different geographical areas, with Alpha Inc. focusing on North America and Beta Co. focusing on Asia. Both companies are considering international expansion in the next fiscal year. The key financial metrics are as follows: Alpha Inc.:

- Net Income: $3,500,000

- Total Assets: $17,500,000

- Total Liabilities: $8,500,000

- Sales: $24,000,000

- Cost of Goods Sold (COGS): $11,500,000

- Average Inventory: $2,500,000

- Common Equity: $6,000,000

- Total Debt: $8,000,000

- EBIT: $4,600,000

- Interest Expenses: $420,000

- Dividends Paid: $600,000 Beta Co.:

- Net Income: $4,500,000

- Total Assets: $27,000,000

- Total Liabilities: $15,000,000

- Sales: $32,000,000

- Cost of Goods Sold (COGS): $21,000,000

- Average Inventory: $3,300,000

- Common Equity: $8,500,000

- Total Debt: $12,000,000

- EBIT: $5,600,000

- Interest Expenses: $660,000

- Dividends Paid: $1,000,000

answer the following questions:

(b) Given the different geographical focus of the two companies, are there any contextual considerations you should take into account when interpreting these ratios?

(c) How could the international expansion plans of the two companies potentially affect the ratios above, and how might this influence your interpretation of their current financial performance?