Consider the following financial statement data for Hi$-$Tech Instruments:

For the Year Ended December $31$

$($Thousands of Dollars, except Earnings per Share$)$

Sales revenue $$220,000$

Cost of goods sold $135,000$

Net income $18,300$

Dividends $12,600$

Earnings per share $$4\mathrm{.}15$

HI$-$TECH INSTRUMENTS, INC.

Balance Sheets

$($Thousands of Dollars$)$ Current Year Prior Year

Assets

Cash $$28,300$ $$28,000$

Accounts receivable $($net$)56,00051,000$

Inventory $49,50053,700$

Total Current Assets $133,800132,700$

Plant assets $($net$)62,60060,500$

Other assets $25,60023,800$

Total Assets $$222,000$ $$217,000$

Liabilities and Stockholders$$ Equity

Notes payable$$banks $$16,000$ $$16,000$

Accounts payable $32,50028,700$

Accrued liabilities $26,50031,000$

Total Current Liabilities $75,00075,700$

$9\%$ Bonds payable $50,00050,000$

Total Liabilities $125,000125,700$

Common stock $50,00050,000$

Retained earnings $47,00041,300$

Total Stockholders$$ Equity $97,00091,300$

Total Liabilities and Stockholders$$ Equity $$222,000$ $$217,000$

$*$ $$25\mathrm{.}00$ par value; $2,000,000$ shares

Industry Average Ratios for Competitors

Quick ratio $1\mathrm{.}3$

Current ratio $2\mathrm{.}4$

Accounts receivable turnover $5\mathrm{.}9$ times

Inventory turnover $3\mathrm{.}5$ times

Debt$$to$$equity ratio $0\mathrm{.}73$

Gross profit percentage $42\mathrm{.}8$ percent

Profit margin $4\mathrm{.}5$ percent

Return on assets $7\mathrm{.}6$ percent

Calculate the company's debt$-$to$-$equity ratio for the current year.

Note: Round answers to two decimal places, when appropriate.

Answer

Compare the result to the industry average.

The company's debt$-$to$-$equity ratio is Answer than the industry's average.