However, in terms of profitability ratios both companies have their ups and downs. Morrison's are more profitable; however Tesco is doing a better job of deploying capital, although it is down 2.0% on the previous year. In terms of financial management ratios, Tesco appears to be doing well compared to Morrison showing good management of operational activities and the ability to meet short-term financial obligations. Although Tesco appears to be doing slightly better than Morrison, both appear to be struggling with liquidity as they are not in a strong position to repay their current liabilities by divesting their current assets. In terms of debt ratios, both companies once again have their ups and downs, however Tesco has a lower default risk, but lenders feel more secure from Morrison's continued interest payments as they have the financial strength. Tesco's debt ratio has remained relatively flat over the past five years, showing that they are in a stable debt position while their investment in assets is growing