Q) The following table provides a historical summary of key financial ratios for Reza Corporation.

Ratio	2017	2018	2019
Return on Equity	10.8%	-3.1%	-1.4%
Return on assets	3.0%	-0.8%	-0.3%
Cost of sales to sales	75.6%	78.5%	74.8%
R&D expenses to sales	6.3%	6.9%	6.6%
Earnings before interest, tax and depreciation to sales	10.2%	2.3%	5.6%
Debt to total assets	72.4%	75.3%	76.9%

Required:

1. With reference to the appropriate ratios, analyse the trend in Reza Corporations profitability providing plausible reasons for any changes. (6 marks)

2. Explain what an inventory turnover ratio is measuring and how inventory turnover impacts on Reza Corporations profitability. (6 marks)

c. Reza Corporation publishes on its website and discloses key corporate social responsibility (CSR) activities and important topics of interest to stakeholders. Describe an environmental performance indicator and a social performance indicator that may be of interest to Reza Corporations stakeholders. (6 marks)

Total (18 marks) (750 words not including calculations)