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.

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2014 Industry 2015 2013 Profit margin.. 4.3% 4.0% 3.5% 4.2% Return on assets . 5.6% 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. 8.1x 1.8x 1.93x 7.3x 47 days 46 days 45 days 50 days Average collection period. Inventory turnover.... 8.3x 8.1x 8.23x 8.3x Capital asset turnover 3.3x 3.03x 2.7x 3.5x .... 1.3x 1.23x Total asset turnover 1.1x 1.5x Current ratio..... Quick ratio ... Debt to total assets.. 2.2 2.3 2.3 2.1 1.9 2.0 2.0 1.7 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