FIFO versus LIFO: Ratio Analysis. Presented below is financial data for two companies that are identical in every respect except that Company X uses the FIFO method to value its inventory and Company Z uses the LIFO method to value its inventory. Using this data, calculate the following ratios: return on sales, inventory turnover, inventory-on-hand period, and current ratio. Which of the two companies is the better investment opportunity? Why? Sales. Cost of goods sold Net income Inventory.. Current assets Current liabilities. Company X Company Z $110,000 $110,000 49,500 60,000 27,750 17,250 21,000 10,500 64,000 53,500 22,000 22,000