A lending officer is provided with the following information (Table 1) about the financial ratios of a business borrower XYZ Ltd. XYZ Ltd. is a steel producer and has a policy of giving 60 days credit. What do these tell us about the efficiency management of XYZ Ltd?

Table 1A. Financial Ratios of XYZ. Ltd
	2018	2019	2020
Current Ratio	1.55	1.6	1.45
Quick Ratio	0.55	0.45	0.45
Inventory Turnover Ratio	19	19	10.8
Creditor Turnover	57	59	67
Debtor Turnover	53	54	66
Gross profit	20%	21%	18%
Net Profit	7%	6%	6%
Gearing ratio	8%	7%	7%
Table 1B. Financial Ratios of the Industry
	2018	2019	2020
Current Ratio	1.5	1.5	1.3
Quick Ratio	0.45	0.31	0.41
Inventory Turnover Ratio	18	16	9.8
Creditor Turnover	59	62	75
Debtor Turnover	78	79	93
Gross profit	17%	16%	14%
Net Profit	6%	5%	4%
Gearing ratio	14%	15%	14%