A lending officer is provided with the following Table 1 about the financial ratio of a business borrower XYZ Ltd.XYZ Ltd. is a paper producer and has a policy of giving 30 days' credit. What do these tell us about the efficiency management of XYZ Ltd?

Table 1. Financial Ratios of XYZ Ltd. 2018 2019 2020 Current Ratio 1.5 1.4 1.2 Quick Ratio 0.9 0.8 0.8 Inventory Turnover Ratio 2 2.2 1.78 Creditor Turnover(days) 37 39 64 Debtor Turnover(days) 73 74 86 Gross prot 27% 24% 22% Net Prot 7% 6% 6% Gearing ratio 8% 7% 7%