Required

Using the ratios provided, advise of the profitability, liquidity, efficiency, capital structure and market performance of McDonalds Furniture between 2021 and 2022. Your answer must include a discussion of one  relevant ratio in respect to each of the ratio categories listed.

McDonalds Furniture has performed some ratio analysis to analyse their financial performance. Current ratio (times) Debt to equity ratio % Return on Assets ratio % Interest coverage ratio % Dividend payout % Quick ratio (times) Return on equity 96 Asset turnover ratio (times) Inventory turnover (times) Debtors' turnover (times) 2022 1.44 51.23 28.73 2.8 60% 58.90 1.4 2.9 8.5 2021 2.47 40.78 25.35 7.5 80% 0.9 42.80 1.6 2.1 9.5