J Limited manufactures and sells woven carpets to the wholesale trade. J Limited is a member of a trade association and has obtained average performance ratios for carpet manufacturers for the latest year. A comparison of J Limited’s results with the industry averages is as follows:

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J Limited Industry average Return on capital employed 16.5% 21.1% Operating profit margin 7.2% 5.0% Gross profit margin 41.7% 25.4% Non-current asset turnover 5.4 times 8.2 times Inventory turnover period 89 days 37 days Receivables collection period 69 days 42 days Payables payment period 48 days 37 days Current ratio 3.9 times 2.6 times Required Comment on J Limited's performance in the latest year compared with the industry average, as far as the available information will allow.