Figure 1: Ratio table of company A for the three years (2019, 2020, 2021)

Questions:

1. Based on figure 1, analyze the 'profitability' and 'efficiency' of company A for the relevant years. Consider industry averages when formulating your analysis.

2. If you were contemplating an investment in this company, identify what other information (non-financial) would assist your investment decision and why this information (two) is important to you.

\begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{2}{|c|}{ Company A } & \multicolumn{1}{r|}{ Industry } \\ \cline { 1 - 4 } & 2019 & 2020 & 2021 & (Given) \\ \hline Interest coverage ratio & 12.88 & 15.87 & 19.17 & 6.63 \\ \hline Return on asset & 7.93 & 7.32 & 6.45 & 0.65 \\ \hline Return on equity & 13.92 & 11.96 & 11.18 & 15.79 \\ \hline Return on invested capital (ROIC) & 0.16 & 0.12 & 0.10 & 0.26 \\ \hline Operating margin & 12.67 & 15.89 & 16.39 & 8.44 \\ \hline Net profit margin & 8.22 & 9.04 & 10.98 & 2.68 \\ \hline Quick ratio & 0.89 & 2.16 & 1.31 & 0.74 \\ \hline Current ratio & 1.77 & 2.98 & 2.61 & 1.05 \\ \hline Inventory turnover & 5.54 & 5.60 & 4.26 & 22.84 \\ \hline Asset turnover & 0.97 & 0.81 & 0.59 & 0.72 \\ \hline Working capital turnover & 5.80 & 3.27 & 2.50 & 0.34 \\ \hline Debt to asset ratio & 0.20 & 0.14 & 0.30 & 0.3 \\ \hline Debt to equity ratio & 0.36 & 0.22 & 0.58 & 2.76 \\ \hline Long term debt to total assets & 0.19 & 0.11 & 0.29 & 0.25 \\ \hline \end{tabular}