Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current ratio b. Quick ratio Industry Average 1.6:1 1.1:1 c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory 21 days 5 times 70 days f. Ratio of pledged plant assets to secured liabilities 1.4:1 g. Times interest earned 50 times h. Profit margin 14 % i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity 2.3 times 20% 32.7 %