Ocean Limited is an old-established clothing retailer Uzbekistan. The company operates from expensive city-centre premises and offers a high standard of customer service. The companys customers are willing to pay top prices to shop in comfort, and one of its competitive advantages is customers royalty. The following financial ratios are related to the companys performance for the years ended 30 June 2019 and 2020.

Ratios	2019	2020
Current ratio	3	1.5
Acid-test ratio	1.0	0.6
Inventory turnover (times)	10	6.8
Debts to total assets	20	50
Gross profit percentages	48%	29%
Operating profit percentage	19.5%	11.3%
Return on capital employed	13%	4.5%
Return on equity	20.5%	10.7%
Interest cover (times)	6	3
Dividend cover	4	1.5

Required: You have been engaged by the company to analyse the performance of the company for the last two years. Write a report to the Board of Directors analysing the companys performance and provide recommendations to improve on its competitive advantages in the business environment and operation.