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If you were an investor in a firm, which of the following would you view NEGATIVELY ? In all cases, assume that other things are

If you were an investor in a firm, which of the following would you viewNEGATIVELY? In all cases, assume that other things are held constant.

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The firm's Profit Margin is 10.5%, whereas the industry average is 10.0%

The company's Times Interest Earned (TIE) is 2x, whereas the industry average is 4x

The firm's DSO (days sales outstanding) is 40 days, whereas the industry average is 45 days

The firm's Return on Equity is 13.0%, whereas the industry average is 12.0%

The firm's FATO is 2.5x, whereas the industry average is 2.0x

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