Carillion Plc was one of the UK's leading companies in the construction sector and provided integrated support services to other companies.The company had projects ongoing in the UK, Canada and the Middle East.The company filed for compulsory liquidation in January 2018.Carillion grew through a series of acquisitions, and took on multiple public projects in the public sector.As a result of this, Carillion had high levels of goodwill on its balance sheet.In the annual report of December 2016, Carillion affirmed that "the Directors believe that they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three-year period of their assessment".Further, the company decided not to note down any impairment losses in 2016.The auditors agreed with this assessment of the company, and agreed with the company's decision to not take an impairment charge in 2016 and signed off on the auditor's report.

However, following the appointment of a new finance director who identified problems with certain accounting techniques, a detailed review of the financial statements was conducted.Based on this review, the company released information that there would be an impairment loss of 845 million, which was further updated to be 1,045 million.Due to these large impairment losses, naturally the expected profits went down significantly.The announcement of this profit warning led to loss of confidence by investors and lenders.The firm was forced to declare bankruptcy in January 2018.

You are an analyst asked to evaluate the performance of Carillion for the last several years in order to explain the reasons for the company's decline. Please go over the company's financials and ratios.

2008 2009 2010 2011 2012 2013 2014 2015 2016 Profitability Ratios Gross Margin (%) 8.2 7.8 8.3 9.4 10.6 10.4 9.4 8.6 8.0 Operating Margin (%) 1.4 2.0 2.8 3.4 4.1 2.4 4.6 3.7 3.0 Return on Assets (%) 4.0 3.8 4.7 3.9 4.2 2.7 3.2 3.4 3.0 Return on Equity (%) 15.9 14.8 18.2 14.7 16.2 10.2 13.1 14.2 14.7 Liquidity Ratios Current Ratio 0.83 0.77 0.84 0.90 1.09 1.01 1.03 1.02 1.02 Quick Ratio 0.63 0.57 0.82 0.86 1.5 0.98 1.00 0.98 0.96 Cash Ratio 0.14 0.15 0.23 0.27 0.40 0.26 0.27 0.27 0.22 Gearing Ratios Gearing Ratio 0.49 0.84 Interest Coverage 4.1 3.4 Efficiency Ratios Receivables 25.6 Settlement Period Inventory 3.4 6.5 Holding Period Shareholder Ratios Earnings per Share Dividends per Share O Page 9 of 11 UL21/0027 2010 2011 2012 2013 2014 2015 2016 Non-Current Assets (Em) Net Property, Plant, and Equipment 157 134 127 128 141 141 144 Goodwill and Intangible Assets 1221 1547 1540 1553 1611 1634 1669 Deferred Income Taxes 101 137 121 113 143 104 164 Total Assets (Em) 3153 3699 3862 3640 3890 3870 4433 Cash Flow Statement (Em) 2010 2011 2012 2013 2014 2015 2016 Net Cash from Operating Activities 126 103 -26 -78 124 73 73 Net Cash from Investment Activities 31 -136 14 107 26 0 Net Cash from Financial Activities -22 130 178 -266 -72 -105 .84