The following ratio calculations are based on three years of financial statements and are compared to the industry standards. The retail company has had some growth during this period but has found that its profitability is less than satisfactory. Examine the ratios to identify possible reasons for the profitability concerns, Profit margin Return on assets 20XX 4.3% 5.6% 20XW 20XV Industry 4.0% 3.5% 4.2% 4.8% 3.9% 6.4% Return on equity 11.2% 9.8% 7.7% 13.7% Gross margin 43% 43% 43% 40% Receivables turnover 7.8x 7.93x 8.1x 7.3x Average collection period 47 days 46 days 45 days 50 days Inventory turnover 8.1x 8.23x 8.3x 8.3x Capital asset turnover 3.3x 3.03x 2.7x 3.5x Total asset turnover 1.3x 1.23x 1.1x 1.5x Current ratio 2.2 2.3 2.3 2.1 Quick ratio 1.9 2.0 2.0 1.7 Debt to total assets 50% 50% 50% 54% Times interest earned 8.1x 8.23x 8.1x 7.2x Fixed charge coverage 5.5x 4.53x 4.0x 5.1x