Say for instance that the following ratios were calculated for Garcia Tech, and use the information to answer the following questions.

	Ratio	2015	2014
1	Return on assets	20%	15%
2	Trade payable time	15 days	30 days
3	Current ratio	2.5 times	3 times
4	Net profit margin	20%	10%
5	Trade receivables turnover ratio	1.4 times	2.4 times
6	Debt: equity ratio	0.45	0.60
7	Total asset turnover ratio	1.00 times	1.50 times
8	Inventory turnover time	15 days	20 days
9	Finance cost coverage	2 times	0.5 times
10	Financial leverage	1.125 times	1.25

a) Did the profitability of the company improve during the year? Why?

b) Did liquidity improve during the year? Why?

c) What caused liquidity to change in the way that it did?

d) Did the companys solvency decline during the year? Why?