a.

b.

c.
Ratio 2014 2015 % change
Current rat 3.25 3 -7.69%
Quick ratio 2.5 2.2 -12.00%
Inventory 12.8 10.3 -19.53%
Average col 42.6 31.4 -26.29%
Total asset 1.4 2.0 42.86%
Debt ratio 0.45 0.62 37.78%
Times inter 4.00 3.85 -3.75%
Gross profi 68% 65% -4.41%
Operating p 14% 16% 14.29%
Net profit 8.3% 8.1% -2.41%
Return on t 11.6% 16.2% 39.66%
Return on 21.1% 42.6% 101.90%
Price/Earni 10.7 9.8 -8.41%
Market/boo 1.40 1.25 -10.71%

Ratio 2014 2015 % change Company's favor?

Quick ratio 2.5 2.2 -12.00% No
Inventory 12.8 10.3 -19.53% No
Average col 42.6 31.4 -26.29% Yes
Total asset 1.4 2.0 42.86% Yes
Debt ratio 0.45 0.62 37.78% No
Operating p 14% 16% 14.29% Yes
Return on t 11.6% 16.2% 39.66% Yes
Return on 21.1% 42.6% 101.90% Yes
Market/boo 1.40 1.25 -10.71% No

Ratio 2014 2015 % change

Average col 42.6 31.4 -26.29%
Total asset 1.4 2.0 42.86%
Debt ratio 0.45 0.62 37.78%
Return on t 11.6% 16.2% 39.66%
Return on 21.1% 42.6% 101.90%

Return on common equity increased significantly in comparison with 2014 year.

This change might be the result of increase in Return on assets ratio and higher debt ratio
ROE = ROA x FLM (financial leverage multiplier)
ROA itself is affected by higher total asset turnover as ROA = Total assets turnover x Net profit margin