Table 1. Solace Espresso Co.: Selected Financial Ratios
RATIOS 2024 2025 3-Year Industry Average Profitability Return on Assets (ROA) 0.065 0.030 0.079 Activity Total Asset Turnover 1.7x 1.5x 1.6x Inventory Turnover 5.4x 3.8x 5.7x Liquidity Current Ratio 1.5 1.0 1.8 Leverage Debt to Assets 0.50 0.66 0.42
Based on Table 1 above, which statement best describes Solace’s financial position in 2025 compared with the three-year industry average?