We have a firm, which has debt ratios, profit ratios, liquidity ratios and activity ratios significantly worse than the industry. Specifically, ITO and ATO for the firm are 4 and 1.2, while for the industry they are 10 and 2.8. Discuss generally what the three types of ratios indicate. (Do not do the profit ratios.) What is the cause of their problems? please show your work.
DO NOT USE EXCEL.