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The following ratios have been calculated for Hi-Tech Toys. Analyze the capital structure, long-term solvency, and profitability of Hi-Tech Toys. Financial ratios 2015 2014 Leverage

The following ratios have been calculated for Hi-Tech Toys. Analyze the capital structure, long-term solvency, and profitability of Hi-Tech Toys.

Financial ratios 2015 2014

Leverage

Debt ratio (%) 65.3 57.2

Long-term debt to total capital (%) 46.8 17.6

Times interest earned (times) (1.5) 3.9

Cash interest coverage (times) 4.1 9.2

Fixed charge coverage (times) (0.4) 2.8

Cash flow adequacy (times) 0.3 0.8

Profitability

Gross profit margin (%) 54.7 58.6

Operating profit margin (%) (2.3) 7.4

Net profit margin (%) (3.4) 4.7

Cash flow margin (%) 4.3 8.9

Return on assets (%) (3.1) 3.2

Return on equity (%) (10.7) (9.9)

Cash return on assets (%) 3.8 8.4

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