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 at an investment bank made some comments about Datac:

1. Earnings performance is low because operating expenses are too high
2. Interest coverage is higher because of its conservative financing
3. The firm has higher production costs than the industry

How many of the above statements are correct?