As the manager Hops ltd, you want to evaluate the profitability of the company for the year ended January 2023, compared to the year before.

To assist you with your analysis, you have calculated the following ratios from the companys financial statements

	2022	2023
gross profit margin	41%	36%
operating profit margin	24%	12%

Required:

Evaluate the profitability of the company for the past two years, ensuring to cover both ratios in your evaluation.

Recommend two ways to improve the performance of the company, clearly justifying your recommendations.