Chemicals and Company Name: Allied Products Y ear 2018 Industry Ratios Solvency or Debt Ratios Merck J&J 2018 Debt ratio 0.67 Debt-to-equity ratio 0.93 0.61 0.47 0.51 0.38 Interest coverage ratio...

Compare the performance of both companies with each other, for each of the calculated indicators and determine if it is necessary to make any adjustment or adjustments to better position the firm with the lowest performance, facing the end of the next fiscal year. Explain what adjustments you propose and why.

Extracted text: Chemicals and Company Name: Allied Products Y ear 2018 Industry Ratios Solvency or Debt Ratios Merck J&J 2018 Debt ratio 0.67 Debt-to-equity ratio 0.93 0.61 0.47 0.51 0.38 Interest coverage ratio 12.27 18.91 -9.43 Liquidity Ratios Current ratio 1.17 Quick ratio 0.92 Cash ratio 0.40 1.47 3.47 1.16 2.12 0.63 2.24 Profitability Ratios Profit margin 14.64% 18.75% -93.4% ROE (Return on equity), after tax 23.03% 25.60% -248.5 ROA (Return on assets) 7.49% 10.00% -146.5 Gross margin 68.06% 66.79% Oper ating margin (Return on sales) 19.62% 24.27% 55.3% 42.9% Activity or Efficiency Ratios Asset turnover 0.51 Receivables turnover (days) 61.02 0.53 1.08 63 16 Inventory turnover (days) 146.98 129 36 Price Ratios Dividend Payout Ratio 0.84 0.62 0.15