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Question 21 (2 points) Given the financial ratios shown below, which of the following can you conclude about this company? 2018 2019 Industry Average ROA

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Question 21 (2 points) Given the financial ratios shown below, which of the following can you conclude about this company? 2018 2019 Industry Average ROA 4.25% 6.20% 3.75% ROE 6.50% 7.80% 6.25% Net profit Margin 3.25% 4.10% 3.00% Current Ratio 1.5 1.3 2.25 Quick Ratio 0.57 0.45 1.2 Debt/Assets 30.00% 31.00% 42.00% Inventory Turnover 4.8 6.2 5 Days Sales Outstanding 28 29 32 Total Asset Turnover 2.2 2.3 1.7 The company is struggling with profitability. The company is not effectively managing its cash position. The company is not effectively managing its assets. The company is likely overvalued in the stock market

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