Problem: In order to determine how risky Company A is that you are auditing, you prepare these five ratios along with the same ratios of this company's peers.
Company A Peers
Day's Sales in Receivable Index 1.51 1.05
Gross Margin Index 1.98 1.11
Asset Quality Index 1.21 1.01
Sales Growth Index 1.53 1.19
Total Accruals to Total Assets 0.11 0.06