In Table 3.5, most of the specific firms listed have current ratios that fall below the industry average. Why? The exception to this general pattern is Whole Foods Market, which competes at the very high end of the retail grocery market. Why might Whole Foods Market operate with greater-than-averageliquidity?

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TABLE 3.5 Financial Ratios for Select Firms and Their Industry Median Values collection Total Current Quick Inventory period asset Net profit margin Return on total asscts 1%) Return on Common Equity (%) 25.4 18.9 ratio ratio turnover (days) turnover Debt ratio (96) 1.3 1.2 1.1 2.5 2.1 1.3 0.4 13 0.2 1.2 40.5 58.9 1.6 Hewlett-Packard 0.6 0.4 0.5 0.4 6.7 1.2 5.8 61.3 -3.1 Home Depot 4.0 13.7 9.3 1.4 5.4 Building Materials 2.8 0.8 5.3 4.0 1.0 03 12.0 0.8 0.4 0.6 0.6 Whole Foods Market 13 1.0 25.6 7.0 7.5 8.0 Grocery Stores 1.3 07 11.1 1.3 03 0.9 0.3 2.1 9.8 1.8 0.9 2.6 Wal-Mart 9.0 8.4 Merchandise Stores 1.70 0.5 10.8 The datz used to calculate these ratios are drawn from the Compustat North American datahase.