This is the calculation of Treasury Wine Estates from financial statement. Comment on these calculations: a) Has liquidity or stability improved or not and why? Do you think there is any financial risk for the company? b) What are the largest current assets and non-current assets? Is this appropriate for the nature of this business. *(use 2016 annual report of TWE)

RatiosFormula Debt Ratio FY15FY16 26.49% | 32.40% Debt Ratio = Total Liabilities Total Assets 10.80 Interest Coverage Ratio 16.50 EBIT Interest Expense Interest Coverage Ratio = Current Ratio Current ratio 1.29 1.33 Current assets Current liabilities = xtimes 1.11 1.18 Quick Ration Quick Ration Current assets-inventory Current liabilities 0.08 Cash FlowCash flow ratio (liquidity) Ratio 0.04 in activitie. xtimes Net cash flows from operating activities Current liabilities