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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

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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 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 An analyst asserts "Datac has better overall liquidity than the industry average because it collects accounts receivable and turns inventory faster than the average firm in the industry." Given the evidence, is the analyst correct in these assertions? yes No, the assertion about A/R is correct but the assertion about inventory is not No, the assertion about inventory is correct but the assertion about A/R is not No, neither assertion is correct o

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