Question

Please help me create a financial analysis out of this:

Liquidity Ratio	YEAR ONE	YEAR TWO
Current Ratio	2.82	2.55
Quick Ratio	1.46	1.58
Cash Ratio	0.47	0.65
Networking Capital to Total Asset	0.41	0.48
Activity Ratio	YEAR ONE	YEAR TWO
Inventory Turnover	8.00	4.83
Average days Inventory	45.00	74.54
Asset Turnover	3.70	2.15
Receivable Turnover	20.80	9.67
Average days Receivable	17.31	37.21
Payable Turnover	34.05	13.67
Leverage Ratio	YEAR ONE	YEAR TWO
Debt-to-equity	0.39	0.64
Debt-to-total assets	0.28	0.39
Equity Ratio	0.72	0.61
Times Interest Earned Ratio	11.38	10.44
Cash Coverage Ratio	20.00	14.56

Answer 1

Liquidity ratios
Current ratio has decreased slightly and quick ratio have increased slightly Cash ratio has improved means in year 2 company have more cash to cover it current liabilities compared to year 1 cash. Net working capital to total assets have gone up slightly so by looking at liquidity ratios we can say that liquidity of firm has not changed much in year2
			Activity ratio
Inventory turnover has gone down and average days inventory have gone up it means company is not managing its inventory in efficient manner rather inventory management has been poor in year2 compared to year1. Same thing is with receivables and total assets turnover ratios both ratios have gone down from year1 levels. Receivable day have increased from 17.31 to 37.21 which means in year 2 firm is taking more days to collect its receivable which is not a good sign. Payable turnover ratio have increased means company is paying its creditors faster in year2. Which shows the power of supplier has increased. By looking at overall activity ratios we can conclude that company is not managing its asset well enough, the efficiency has gone down compared to year 1
			Leverage ratios
			Debt to equity ratio and debt to total assets ratio has increased whereas equity ratio have increased which means company is financing its asset using more debts compared to year 1 . Having more debt is considered as more risky. Times interest earned ratio and cash coverage ratio has gone down which reflects that company's ability to meet its financial obligation has gone down. So overall leverage ratios are reflecting companies financial health have become riskier in year2 compared to year1
						So by considering above all three category ratio we can conclude that firms is not in good position compared to year 1 and it looks more riskier and it is not recommended to invest.