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

	Company X	Competitor
ROE (%)	48.6	54
ROA (%)	21.6	36
Debt-to-Equity	1.25	0.5
Current Ratio	1.47	1.25
Quick Ratio	0.67	0.45
Net Profit Margin (%)	18	16
Financial Leverage	2.25	1.5
Interest Coverage	55	35
Total Asset Turnover	1.2	2.25
Days of Sales Outstanding	83	77
Days of Inventory Outstanding	189	210

1) Did company X or the competitor make it operationally more effective, i.e, its assets are more profitable?

2) This company outperforms operationally because?

a) It has used its assets more efficiently for generating sales

or

B) Its sales are more profitable