5. Using the financial ratios calculated from the 2015 annual report of PVC Pipes, assess the short-term liquidity, operating efficiency, capital structure and long-term solvency and profitability of the firm. 8 Ratio 2015 Current .48x 0.98x 58 days 28 days 47 days Quick Average collection period Days inventory held Days payable outstanding 61 days Cash conversion cycle Fixed asset turnover Total asset turnover Debt ratio Long Term debt to 1.70x 671 0% 1.43x 63.08% total capitalization Times interest earned Fixed charge coverage Cash flow adequacy Gross profit margin Operating profit margin Net profit margin Cash flow margin Return on investment Return on equity Cash return on assets 42.51% 1.65x 1.40x 46.82% (5.10x) (2.34x) 10.10% (5.93%) (4.98%) 3.84% (863%) (25.49%) 6.90% 12.81% 2.75% 0.91% 1.28% 910%