Helena Products plc is a manufacturer of office furniture. In January 2019 the company had carried out a strategic review and had decided to target people working from home. In order to achieve this strategy the company had acquired a building with a showroom and a warehouse and had invested in new delivery vehicles. This expansion has been financed by loans and the bank overdraft facility has been fully utilized.

Financial information concerning the business is given below.

Income statements for the year ended 30 November

	2018					2019
	000					000
Revenue	10,482					11,365
Operating profit	914					1,042
Interest charges	(22)					(81)
Profit before taxation	892					961
Taxation	(358)					(386)
Profit for the year		534				575

Statements of Financial Position	2018	2019
Non-current assets	000	000
Property, plant and equipment (cost less depreciation)
Premises	5,240	7,360
Plant and equipment	2,375	4,057
	7,615	11,417
Current assets
Inventories	2,386	5,420
Trade receivables	2,540	2,280
	4,926	7,700
Total assets	12,541	19,117
Equity
Share capital	2,000	2,000
Retained Earnings	7,813	8,268
Non-current liabilities	9,813	10,268
Borrowing loans	1,220	3,675
Current liabilities
Trade payables	1,157	2,245
Taxation	179	193
Short-term borrowing (all bank overdraft)	172	2,736
	1,508	5,174
Total equity and liabilities	12,541	19,117

Required:

Calculate for Helena Products Ltd for both years the following ratios using the available information (to two places of decimals): Interpret the results to you best understanding.

1. Liquidity ratios.
2. Activity ratios
3. Leverage ratio
4. Gearing ratio (debt to capital employed)
5. Debt equity ratio.