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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: Air NZ Qantas Return on Assets Profit Margin Asset Turnover Current Ratio Debt ratio Interest coverage ratio 2019 3.48% 4.67% 0.75 times 0.68 times 73.07% 13.06 times 2018 4.97% 7.1% 0.70 times 0.84 times 72.27% 17.36 times 2019 4.60% 4.96% 0.93 times 0.49 times 82.27% 7.84 times 2018 5.11% 5.56% 0.92 times 0.48 times 78.79% 8.43 times Based on these ratios, comment on Air NZ's financial risk. (7 marks Maximum 200 words)

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