Question 2 Interpreting ratios The following table provides a historical summary of key financial ratios for Somv Corporation. Ratio Return on Equity Return on Assets Cost of Sales to Sales Research and Development Expenses to | 6.3% Sales EBITDA to Sales* Debt to Total Assets Ratio 2014 10.8% 3.0% 75.6% 2015 |-3.1% -0.8% | 78.5% 6.9% 2016 |-1.4% |-0.3% | 74.8% 6.6% 10.2% 12.3% 5.6% 72.4% | 75.3% 76.9% *EBITDA is earnings before interest, tax, and depreciation a. With reference to the appropriate ratios, analyse the trend in Somy's profitability providing plausible reasons for any changes. Explain what an inventory turnover ratio is measuring and how inventory turnover impacts on Somy's profitability. b