d$.$ Analyze the firm's financial condition in $2022$ as it relates to $(1)$ liquidity $(2)$ activity, $(3)$ debt, $(4)$ profitability,

and $(5)$ market, using the financial statements provided in Tables $2$ and $3$ and the ratio data included in Table $5.$

Be sure to evaluate the firm on both a cross$-$sectional and a time$-$series basis.

Ratio Analysis

Track Software, Inc.

Industry

Actual Average TS: Time$-$Series

Ratio $202120222022$ CS: Cross$-$Sectional

Current ratio $1\mathrm{.}061\mathrm{.}82$

Quick ratio $0\mathrm{.}631\mathrm{.}1$

Inventory turnover $10\mathrm{.}412\mathrm{.}45$

Average collection period $29\mathrm{.}620\mathrm{.}2$

Total asset turnover $2\mathrm{.}663\mathrm{.}92$

Debt ratio $0\mathrm{.}780\mathrm{.}55$

Times interest earned ratio $35\mathrm{.}6$

Gross profit margin $32\mathrm{.}10\%42\mathrm{.}30\%$

Operating profit margin $5\mathrm{.}50\%12\mathrm{.}40\%$

Net profit margin $3\mathrm{.}00\%4\mathrm{.}00\%$

Return on total assets $($ROA$)8\%15\mathrm{.}60\%$

Return on common equity $($ROE$)36\mathrm{.}40\%34\mathrm{.}70\%$

Price$/$Earnings $($P$/$E$)$ ratio $5\mathrm{.}207\mathrm{.}10$

Market$/$book $($M$/$B$)$ ratio $2\mathrm{.}102\mathrm{.}20$