Using the financial ratios calculated from the 2015 annual report of PVC Pipes, assess the short- term liquidity, operating efficiency, capital structure and long-term solvency and profitability of the firm. Ratio 2015 2014 Current Quick Average collection period Days inventory held Days payable outstanding Cash conversion cycle Fixed asset turnover Total asset turnover Debt ratio Long Term debt to 1.52x 1.01x 65 days 36 days 61 days 40 days 4.91x 1.70x 671 0% 1.48x 0.98x 58 days 28 days 47 days 39 days 4.02x 1.43x 63.08% total capitalization Times interest earned Fixed charge coverage Cash flow adequacy Gross profit margin Operating profit margin Net profit margin Cash flow m Return on investment Return on equity Cash return on assets 46.82% (5.10x) (2.34x) 0.32x 10.10% (5.93%) (4.98%) 3.84% (8.63%) (25.49%) 6.90% 42.51% 1.65x 1.40x 0.87x 12.81% 2.75% 0.91% 7.00% 1.28% 3.51% 9.1 0% argin Points to consider: (Please do not simply answer the questions below- they are meant to help you focus your ratio analysis but feel free to include add'l points as appropriate.) How does short term liquidity look and what supports your assessment? What do we see happening with the cash conversion cycle and associated components? Any implications of this from a policy perspective? Would you assess the capital structure as risky or not risky considering any trends in long- term/total debt? What is happening to CFO (cash flow from operations)? Profitability assessment and where problems may or may not be impacting your assessment