MNO Ltd. has the following ratios available:

• Current Ratio: 2.5
• Quick Ratio: 1.8
• Debt to Equity Ratio: 0.6
• Return on Equity: 12%
• Inventory Turnover Ratio: 4

Requirements:

1. Assess the liquidity position of the company.
2. Evaluate the solvency position using the debt to equity ratio.
3. Compute the average days in inventory.
4. Analyze the company’s profitability using the return on equity.
5. Compare the liquidity ratios to industry averages, assuming an industry average current ratio of 2.0 and quick ratio of 1.5.