The following ratios have been calculated for AMC Entertainment Inc., owner and operator of movie theaters. Analyze the capital structure, long-term solvency, and profitability ofAMC.

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Financial ratio 2007 2006 Leverage Debt ratio (%) Long-term debt to total capital (%) Times interest earned (times) Cash interest coverage (times) Fixed charge coverage (times) Cash flow adequacy (times) Profitability Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Cash flow margin (%) Return on assets (%) Return on equity (%) Cash return on assets (%) 66.1 54.4 0.6 3.0 0.9 71.7 64.8 0.2 1.2 0.8 0.2 61.7 1.2 62.0 5.4 17.0 3.3 9.6 10.2 (4.3) (15.3) 0.5