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