The following summary financial statistics were obtained from a Company's 2017 Annual report and financial ratios are calculated for 2016.

($ in millions)

Sales revenue $179.3

Total assets $136.3

Net earnings $ 20.2

Shareholders' equity $109.6

Ratios for 2016

- ROA 15.87

- ROE 19.21

- Asset Turnover 1.27

- Net Profit Margin 9.30

Required:

a. Compute ROA using the profit margin and asset turnover and find ROE using the equity multiplier.

b. Based on your calculations, comment on the financial health of the company?