Although the owner has assessed the business performance and position by calculating the financial ratios for the past two years but he would like to know how the business is performing in the market. In order to support this analysis, he contacted a local accountancy firm which provided some industry average ratio.

Ratios	Industry average 2013
Gross profit margin	59%
Net profit margin	32%
ROCE	22.5%
Current ratio	1.9
Acid test ratio	1.1
Receivables days	17
Creditors days	89
Inventory turnover (days)	180
Gearing ratio	10%

Use the industry ratios mentioned above, assess Zack Limited performance and position with in the market by suggesting the reasons?