Analyzing a firm's ratios relative to industry averages is called industry comparison all answers are correct cross-sectional analysis benchmarking A company that is running "lean and mean:"| is utilizing more assets to earn its profit has low gross profit margin has a total asset turnover ratio that is high has a high liquidity ratio A Debt/Assets ratio of 75% and a ROE of 12% means: 25% of assets are financed with owners' equity the owners are financing 75% of the firm's assets in order to receive a 12% profit 12% of the firm's profits are financed with equity the firm can cover interest payments with $0.25 of every dollar left for profit