Ratio Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on equity Price-earnings ratio Debt ratio Times interest earned Year 1 3.12:1 1.34:1 9.7 times 2.4 times 11 .4% 1.21 times 13.7% 28.5% 10.4 times 50.2% 9.6 times Year 2 2.96:1 1.02:1 10.2 times 2.3 times 12.6% 1.22 times 15.4% 29.3% 12.4 times 45.3% 13.0 times What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when 1. you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the trend? What recommendations do you have for turning a negative trend to a positive 4 trend