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Analyze the financial performance of Maison de Luxe based on the following information: Net Sales: 1,000,000 Cost of Goods Sold: 400,000 Operating Expenses: 300,000 Interest
Analyze the financial performance of Maison de Luxe based on the following information:
- Net Sales: €1,000,000
- Cost of Goods Sold: €400,000
- Operating Expenses: €300,000
- Interest Expense: €20,000
- Income Tax Expense: €80,000
- 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 Maison de Luxe's financial management.
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