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Analyze the financial performance of Chteau Royale based on the following information: Sales Revenue: 1,200,000 Cost of Goods Sold: 500,000 Operating Expenses: 300,000 Interest Expense:

Analyze the financial performance of Château Royale based on the following information:

  • Sales Revenue: €1,200,000
  • Cost of Goods Sold: €500,000
  • Operating Expenses: €300,000
  • Interest Expense: €25,000
  • Income Tax Expense: €100,000
  • Average Total Assets: €2,500,000
  • Average Total Equity: €800,000

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 Château Royale's financial management.

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