Below are the Zaldy Company ratio for 20X1,20X2 and the industry average.

Ratio	Industry Average	20X1	20X2
Current Ratio	1.80	1.84	1.04
Quick Ratio	0.70	0.78	0.28
Inventory Turnover	2.50	2.59	2.33
Average Collection Period	37 days	36 days	56 days
Debt Ratio	65.00%	67.00%	61.30%
Times Interest Earned	3.80	4.00	2.80
Gross Profit Margin	38.00%	40.00%	34.00%
Net Profit Margin	3.50%	3.60%	4.10%
Return on Total Assets	4.00%	4.00%	4.40%
Return on Common Equity	9.50%	8.00%	11.30%
Market/Book Ratio	1.10	1.20	1.30

Using the ratio analysis evaluate the company's:

a. liquidity

b. activity

c. profitability