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2. Financial Statement Analysis Interpretation: 7 marks The following ratios for The Air New Zealand Limited (Air NZ) and Qantas Limited (a competitor of the

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2. Financial Statement Analysis Interpretation: 7 marks The following ratios for The Air New Zealand Limited (Air NZ) and Qantas Limited (a competitor of the Air NZ Limited) were calculated for 2019 and 2018: Return on Assets 3.48% 4.97% 4.60% 5.11% Profit Mar-in 4.67% 4.96% 5.55% Asset Turnover 0.75 times 0.70 times 0.93 times 0.92 times Current Ratio 0.68 times 0.84 times 0.49 times 0.48 times Debt ratio 73.07% 72.27% 82.27% 78.79% Interest coverage ratio 13.06 times 17.36 times 7.84 times 8.43 times Based on these ratios, comment on Air NZ's financial risk. (7 marks Maximum 200 words)

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