In analyzing the financial statements of an entity, the following ratios were calculated:

2015

Current ratio 2:1

Quick ratio 1:1

Receivable turnover30 days

Inventory turnover 3 times

Profit margin 10%

2016

Current ratio 1.3:1

Quick ratio 0.7:1

Receivable turnover45 days

Inventory turnover 4 times

Profit margin 7%

Discuss any potential weaknesses that these ratios may reveal in the overall performance of the entity, and comment on possible causes for these results.