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Indicate how the following ratios match up to industry averages. (Interpret them in relation to the category in which they would be classified.) AAA Company

Indicate how the following ratios match up to industry averages. (Interpret them in relation to the category in which they would be classified.) AAA Company Industry Current ratio 2.0 2.7Return on Assets 4% 8%Inventory turnover 17.5 9.9Times interest earned 13.2 15.4

1.

Worse than Industry

2.

Better than Industry

Inventory turnover 1 or 2

ROA

Current Ratio

Times Interest Earned

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