Arthur, CPA is auditing The Home Improvement Store as of December 31, 2018. As with all audit engagements, Arthur's initial procedures are to analyze the entity's financial data by review trends in significant ratios and comparing the company's performance with the industry so that he better understands the business and can determine where to concentrate his audit efforts. As part of Arthur's audit of The Home Improvement Store, he performed analytical procedures by calculating the following ratios and obtaining related industry data.

The Home Improvement Store						Industry
			2014	2015	2016	2017	2018		2014	2015	2016	2017	2018
		Quick ratio	0.67	0.73	1.38	0.45	0.29		0.79	0.81	0.87	0.91	1.08
		Days of inventory on hand	62.73	75.15	82.40	84.02	80.52		82.26	79.89	86.86	84.13	75.04
		Inventory/current assets	53.48%	45.51%	48.42%	62.28%	80.81%		58.04%	56.44%	60.19%	60.92%	50.33%
		Return on assets	16.10%	9.75%	5.70%	2.16%	6.05%		6.98%	8.87%	7.05%	5.06%	11.73%
		Debt to equity	0.02	0.07	1.47	2.36	0.72		0.44	0.31	0.56	0.53	0.57

Required:Compare The Home Improvement Stores ratios with those of its industry. You may want to reference the advanced module in this chapter for more information regarding the ratios used in the analytical procedure. For each ratio provided in the table above

Indicate the potential risks the ratio and/or historical patterns may present.

Indicate one or two plausible explanations for why The Home Improvement Stores ratios or historical patterns differ from those of the industry.