Analyze the financial performance of Le Petit Caf using the following information: Net Sales: 1,500,000 Cost of Goods Sold: 600,000 Operating Expenses: 350,000 Interest Expense:

Analyze the financial performance of Le Petit Café using the following information:

• Net Sales: €1,500,000
• Cost of Goods Sold: €600,000
• Operating Expenses: €350,000
• Interest Expense: €25,000
• Income Tax Expense: €100,000
• Average Total Assets: €2,000,000
• 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 Le Petit Café's financial management.