The two primary objectives of every business are profitability and solvency. Profits

are often used as the basis for judging the performance of a business. However,

there are other aspects too. Furthermore, owing to the summarized nature of

financial statements, a lot of truths are hidden in them. Thus, they need to be

analyzed and interpreted by means of financial ratios to enable the users understand

the meaning of the absolute amounts shown in them, and make informed business decisions. Style Ltd$.$ and Diva Ltd$.$ are two manufacturing companies operating in

the same industry with similar strategies. Both the companies are well$-$established

with a long heritage of success. The following is an extract from the financial

statements of Style Ltd$.$ and Diva Ltd$.$ for the year ending March $31,2023$

You are required to compute the following ratios for both the companies and

comment:

a$.$ Leverage$-$ Debt to Equity and Interest Coverage Ratio

b$.$ Profitability$-$ Gross Profit Margin and Return on Equity