The following ratio information about Quality pic for the year ended 31 December 2014 has been provided to you along with the sector average ratios Return on capital employed Net asset turnover Operating margin Gearing (based on market value) Quality 12% 1.6 7.5% see below Sector average 16.8% 1.4 12% 38% ties can be summ as follows: Quality's equity ar Equity Ordinary 1 shares Reserves Em 15 12 5% Loan notes 14 At 31 December 2014, the market value of 1 Quality share is 2.50 and the value of each 100 bond is 105. Required: a) Calculate the gearing ratio for Quartile b) Assess the position of Quartile in comparison to the sector averages for the ratios provided above c) Discuss the limitations of ratio analysis