The following table presents a summary of ratio analysis for Uncle Joe's Coffee, based on the most recent 12 months and five-year comparisons of Uncle Joe's with averages in the restaurant industry and the services sector, respectively.

Company Industry Sector

Return on assets 10.68% 9.04% 5.09%

Return on assets- 5 yr. avg. 8.23% 8.37% 6.78%

Return on equity 13.94% 17.55% 10.97%

Return on equity- 5 yr. avg. 11.28% 15.69% 15.76%

Receivable turnover 34.15 27.99 16.11

Inventory turnover 11.88 34.73 15.94

Asset turnover 1.58 1.30 1.22

1. Using the information provided for Uncle Joe's and the industry and sector, briefly summarize the operating performance of Uncle Joe's relative to its benchmark competitors.

2. What limitations exist in drawing meaningful comparisons about the performance of Uncle Joe's from the data above?