Home Health Inc. Corporation has come to Jane Rose for a yearly financial check$-$up$.$ As a

first step, Jane has prepared a set of ratios for fiscal years $2005$ and $2006.$ Analyze its overall financial

situation from a time series viewpoint.

Home Health Inc. Financial Ratios

Ratio $20052006$

Current ratio $3\mathrm{.}253$

Quick Ratio $2\mathrm{.}52\mathrm{.}20$

Inventory turn over $12\mathrm{.}8010\mathrm{.}30$

Total asset turnover $1\mathrm{.}42$

Debt Ratio $0\mathrm{.}450\mathrm{.}62$

Net profit margin $8\mathrm{.}3\%8\mathrm{.}1\%$

Return on total asset $11\mathrm{.}6\%16\mathrm{.}2\%$

Return on common equity $21\mathrm{.}1\%42\mathrm{.}6\%$