Review the financial ratios of company X and its competitor and fill in the blanks:

	Company X	Competitor
ROE (%)	36	22.5
ROA (%)	12	18
Debt-to-Equity	2	0.25
Current Ratio	1.5	1.3
Quick Ratio	0.3	0.8
Net Profit Margin (%)	16	15
Financial Leverage	3	1.25
Interest Coverage	35	55
Total Asset Turnover	0.75	1.2
Days of Sales Outstanding	16	27
Days of Inventory Outstanding	24	32

1) Company X or the Competitor has used more debt to finance its assets, i.e, has used greater financial leverage?

2) This company seemed to have insufficient or sufficient liquid assets to cover its short-term liabilities and have Insufficient or Sufficient operating profits to cover its interest expense?