Ratio

Industry

Datac Inc

Gross Margin

$13\mathrm{.}72\%$

$11\mathrm{.}79\%$

Operating Margin

$6\mathrm{.}01\%$

$5\mathrm{.}01\%$

Net Margin

$4\mathrm{.}51\%$

$3\mathrm{.}00\%$

ROE

$13\mathrm{.}8\%$

$15\mathrm{.}7\%$

Equity Multiplier

$2\mathrm{.}78$

$8\mathrm{.}05$

Times Interest Earned

$5\mathrm{.}07$

$8\mathrm{.}60$

AR Turnover

$5\mathrm{.}75$

$2\mathrm{.}68$

Inventory Turnover

$8\mathrm{.}37$

$11\mathrm{.}05$

Quick Ratio

$0\mathrm{.}33$

$1\mathrm{.}07$

Current Ratio

$0\mathrm{.}51$

$1\mathrm{.}20$

Total Asset Turnover

$1\mathrm{.}10$

$0\mathrm{.}65$

An analyst at an investment bank made some comments about Datac:

$1.$ Earnings performance is low because operating expenses are too high

$2.$ Interest coverage is higher because of its conservative financing

$3.$ The firm has higher production costs than the industry

How many of the above statements are correct?

$0$

$1$

$2$

$3$