JRP Ltd is a mail-order business selling a variety of consumer products. At the end of 2015, its major shareholder instigated changes in management in order to improve performance. The financial statements for the years ending 30 June 2015 and 2016 are shown below.

1. Calculate the following ratios:

a. Return on assets (using EBIT)

b. Asset turnover

c. Profit margin

d. Return on shareholders' equity

e. Current

f. Quick asset

g. Inventory turnover

h. Days in inventory

i. Debtors turnover

j. Days in debtors 

k. Debt-to-equity

I. Interest coverage.
2. Comment on the company's performance, indicating any changes you would suggest.

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INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 $000 Sales Less: COGS Gross profit Less: Expenses: Selling and administration Interest charges Profit before tax Less: Tax Net profit after tax 9000 6300 2700 1260 400 1040 140 900 2015 $000 8125 5687 2438 1382 256 800 150 650