The table below is the key financial results of a Hypothetical company MAQ APPLIANCES: (4 marks)

	30 June 2020	30 June 2021
Net Interest-bearing Debt	$2200m	$910m
Equity	$5700m	$6500m
Gearing Ratio	26%	12%
Interest Cover	11x	34x
Debt Cover	1.8x	0.4x

Gearing ratio = Net debt / Net debt + equity (covenant limit <55%)

Debt cover = Net debt / EBITDA (covenant limit <3.5)

Interest cover = EBITA / Net interest expense (covenant limit >3.25)

Briefly analyse the financial position of MAQ Appliances from 30 June 2020 to 30 June 2021. (4 Marks)