QUESTION 1: Analyse the sources of finance for each of the two companies in 2019 as compared to 2018. Use two capital structure ratios to support your answer and provide an explanation regarding the changes in the composition of the sources of finance for each enterprise. Note: ensure that you analyse in this question, not just describe the ratio values. Debt ratio Debt ratio = Total liabilities Total assets ZEN 2018: Debt ratio = 51,862,000.00 / 96,418,000.00 = 0.53788... = 0.54 ZEN 2019: Debt ratio = 107,009,000.00 / 179,395,000.00 = 0.59649... = 0.60 CEN 2018: Debt ratio = 2,369,989,911.00 / 4,871, 136,384.00 = 0.48653... = 0.49 CEN 2019: Debt ratio = 2,076,084,878.00 / 4,735,232,269.00 = 0.438433.... = 0.44 Interest Structure Ratio Interest coverage ratio = Operating profit or EBIT Interest expense ZEN 2018: Interest coverage ratio = 14,130,000.00 / 2,153,000.00 = 6.562935439 = 6.56 1 / 6.56 = 15.2% ZEN 2019: Interest coverage ratio = 12,533,000.00 / 3,950,000.00 = 3.172911392 = 3.17 1 / 3.17 = 31.5% CEN 2018: Interest coverage ratio = 217,371,365.00 / 77,960,194.00 = 2.788235301 = 2.79 1 / 2.79 = 35.8% CEN 2019: Interest coverage ratio = 288,663,735.00 / 70,732,173.00 = 4.081081109 = 4.08 1 / 4.08 = 24.5%