Luna Lighting, a retail firm, has experienced modest sales growth over the past three years but has had difficulty translating the expansion of sales into improved profitability. Using three years' financial statements, you have developed the following ratio calculations and industry comparisons. Based on this information, suggest possible reasons for Luna's profitability problems.

2016 Current Average collection period Inventory turnover Fixed asset turnover Total asset turnover Debt ratio Times interest earned Fixed change coverage Gross profit margin Operating Profit margin Return on assets Return on equity 2015 2014 2.3x 45 Days 8.3x 2.7x 1.1x 50% 8.1x 4.0x 43% 6.30% 3.50% 3.70% 7.40% 2.3X 46 Days 8.2x 3.0x 1.2x 50.00% 8.2x 4.5x 43% 7.20% 4.00% 5.00% 9.90% 2.2X 47 Days 8.1x 3.3x 1.3x 50% 8.1x 5.5x 43% 8.00% 4.30% 5.70% 11.40% Industry Averages 2016 2.1X 50 Days 8.3x 3.5x 1.5x 54% 7.2x 5.1x 40% 7.50% 4.20% 6.40% 11.80%