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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
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?
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