52. Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Years Item 2021 2020 2019 2018 2017 2016 $m $m $m $m Sm $m Sales 286.41 280.80 275.29 269.89 264.60 252.00 Cost of sales 180.03 166.69 154.35 142.91 134.19 126.00 EBIT 51.18 51.08 50.98 50.88 49.88 48.90 Interest 37.07 33.70 30.64 27.85 25.32 24.00 NPAT 35.13 35.10 35.06 35.03 34.51 34.00 Current assets 43.85 43.20 42.56 41.93 41.31 40.70 Total assets 226.18 221.75 217.40 213.13 206.93 200.90 current liabilities 55.99 53.58 51.27 49.06 47.40 45.80 Total liabilities 98.99 91.66 84.87 78.58 74.48 70.60 Equity 127.19 130.09 132.53 134.56 132.44 130.30 Gross margin 0.37 0.41 0.44 0.47 0.49 0.50 Interest coverage 1.38 1.52 1.66 1.83 1.97 2.04 Current ratio 0.78 0.81 0.83 0.85 0.87 0.89 Debt ratio 0.44 0.41 0.39 0.37 0.36 0.35 Inventory 18.86 18.13 17.44 16.76 16.12 15.50 Inventory in days 38.23 39.70 41.23 42.82 43.85 44.90 Receivables 27.21 25.43 23.77 22.21 20.76 19.40 Receivables in days 34.68 33.06 31.51 30.04 28.63 28.10 Payables 34.09 28.41 23.67 19.73 16.44 13.70 Payables in days 69.12 62.20 55.98 50.39 44.72 39.69 Cash Conversion Cycle 3.79 10.56 16.76 22.47 27.76 33.31 You have been approached by Dumbledore Ltd's main competitor, Voldemort Ltd., to assess the performance of the company as a prospect for a takeover. Using the above data, prepare an analysis of the firm under the following headings: 1. Dumbledore's short-term liquidity position (4 marks) 2. Dumbledore's operating performance (4 marks) 3. Dumbledore's solvency (4 marks) 4. Dumbledore's Return on Equity calculate ROE for 2021 and 2017) (4 marks)