Ratio		Industry			Datac Inc
Gross Margin		13.72%			11.79%
Operating Margin		6.01%			5.01%
Net Margin		4.51%			3.00%
ROE		13.8%			15.7%
Equity Multiplier		2.78			8.05
Times Interest Earned		5.07			8.60
AR Turnover		5.75			2.68
Inventory Turnover		8.37			11.05
Quick Ratio		0.33			1.07
Current Ratio		0.51			1.20
Total Asset Turnover		1.10			0.65

Which of the following is the most plausible reason Datac's return on equity is higher than the industry average?

• Datac is generating more net income per dollar of sales than the industry average
• Datac has a lower interest coverage ratio than the industry average
• Datac is more aggressively financed than the industry average
• Datac uses its assets more efficiently than the industry average