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Analyze the financial performance of Caf du Monde using the following information: Net Sales: 2,000,000 Cost of Goods Sold: 800,000 Operating Expenses: 500,000 Interest Expense:

Analyze the financial performance of Café du Monde using the following information:

  • Net Sales: €2,000,000
  • Cost of Goods Sold: €800,000
  • Operating Expenses: €500,000
  • Interest Expense: €30,000
  • Income Tax Expense: €150,000
  • Average Total Assets: €3,000,000
  • Average Total Equity: €1,200,000

Calculate the following financial ratios: gross profit margin, operating profit margin, return on assets (ROA), return on equity (ROE), debt-to-equity ratio, and interest coverage ratio.

Interpret the results of the financial ratios and provide recommendations for Café du Monde's financial management.

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