$1-$We have the following Ratios for the companies $($Essilor $$ Luxottica$).$

Essilor$-$ Luxottica $2021$

a$)$ Working capital $279,000$

b$)$ Current ratio $1\mathrm{.}032$

c$)$ Debt ratio $0\mathrm{.}0019$

d$)$ Earnings per share $3\mathrm{.}32$

e$)$ Price$/$earnings ratio $50\mathrm{.}18$

f$)$ Total asset turnover ratio $0\mathrm{.}34$

g$)$ Financial leverage $1\mathrm{.}69$

h$)$ Net profit margin $0\mathrm{.}074$

i$)$ Return on assets $0\mathrm{.}025$

j$)$ Return on equity $0\mathrm{.}042$

Essilor$-$ Luxotica $2022$

a$)$ Working capital $-247,000$

b$)$ Current ratio $0\mathrm{.}98$

c$)$ Debt ratio $0\mathrm{.}0022$

d$)$ Earnings per share $4\mathrm{.}84$

e$)$ Price$/$earnings ratio $36\mathrm{.}26$

f$)$ Total asset turnover ratio $0\mathrm{.}40$

g$)$ Financial leverage $1\mathrm{.}62$

h$)$ Net profit margin $0\mathrm{.}088$

i$)$ Return on assets $0\mathrm{.}036$

j$)$ Return on equity $0\mathrm{.}058$

$2-$ Compare the Ratios of the company for the two years

$3-$Comparison Analysis: Explain what the results of these Ratios and your comparison

indicate about the business$$s current financial health, providing examples to support your explanation. You might consider the following questions:

a$)$ Do the results indicate the business is financially healthy or financially unhealthy? Which results indicate this?

b$)$ What might be the cause$($s$)$ of the business$$s financial success or failure?

c$)$ Is more information needed to determine the business$$s financial health? If so$,$ which pieces of information might still be needed?

$5-$ Short$-$Term Financing: Explain how potential short$-$term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business$$s current financial information

$6-$ Explain the rationale for the answers to financial ratio calculations.

$7-$analyze the business$$s current financial position and help them make decisions about how to improve or maintain their financial health.

$8-$Pay particular attention to working capital management. If liquidity is an issue, consider how the company will meet its short$-$term obligation.

$9-$ Fiscal Year Comparison: Using Mergent Online, summarize the differences between the results from your most recent fiscal year and the results of the same financial calculations from the previous fiscal year of your chosen businesses.

$10-$ Short$-$Term Financing: Explain how potential short$-$term financing sources could help the business raise needed funds to improve its financial health. Base your response on the business$$s current financial information