Liquidity Ratio Formula 2015 2014Current Ratio Current Assets/Current Liabilities 3.269 2.994Quick Ratio (Current Assets – Inventory)/Current Liabilities 0.661 0.469Inventory Billing Cost of goods sold/inventory 0.993 0.971 The financial health of MHJ does not look promising as can be seen above, although the current ratio indicates that the company is capable of repaying its debt in the long run, but in the short run the quick ratio suggests that MHJ is unable to pay its current debts which are due within a year as the ratio is less than 1. The inventory turnover ratio is low which means the company is not efficiently turning its inventory into sales. Capital Structure Formula 2015 2016 Debt Ratio Total Liabilities to Total Assets 0.465 0.467 The debt ratio shows that MHJ has 0.465 assets to repay $1 of liabilities in 2015 and 0.476 in 2014. This is an indicator that MHJ is unable to repay the its debt when two collapse.Profitability Formula 2015 2014Gross Profit Margin Gross Profit/Sales 0.640 0.640Operating Profit Margin EBIT/Sales 7.95 8.88REFERENCE LISTBesley, S., Brigham, E. (2014) CFIN (4th Edition) . Australia,