1. What does the calculation of each ratio represent?

Ratio Year 1 Year 2 3.12:1 1.34:1 9.7 times 2.96:1 1.02:1 10.2 times 2.4 times Current ratio Quick ratio Receivables turnover Inventory turnover Profit margin Asset turnover Return on assets Return on equity Price-earnings ratio Debt ratio Times interest earned 11.4% 1.21 times 13.7% 28.5% 10.4 times 50.2% 9.6 times 2.3 times 12.6% 1.22 times 15.4% 29.3% 12.4 times 45.3% 13.0 times