Gale & Co. has applied for a loan from the Trust Us Bank in order to invest in several potential opportunities. In order to evaluate the firm as a potential debtor, the bank would like to compare Gale & Co. to the industry. The following are some key financial ratios

2016 2017 Industry Norm(2017)

Current Ratio 4.3X 5.7X 5.0X

Quick Ratio 2.1X 2.8X 3.0X

Inventory Turnover 1.0X 1.3X 2.2X

Average Collection Period 90days 78.3days 90days

Debt Ratio 33% 28% 33%

Times Interest Earned 5.0X 6.0X 7.0X

Total Asset Turnover .46X .54X .76X

Fixed Asset Turnover .92X .99X 1.0X

Operating Profit Margin 29.1% 25.6% 20%

Net Profit Margin 12.0% 14.6% 16.3%

Return on Total Assets 7.1% 7.5% 9.0%

Basic Earning Power Ratio 13.4% 13.7% 15.0%

Return on Equity 10.6% 10.4% 13.4%

What are the firms financial strengths and weaknesses? Should the bank make the loan? Why or why not?