Design Extravaganza Ltd. designs and retails formal wear sold in stores in North America, Asia, and Europe. Selected financial data (in thousands) for recent years are as follows:

Instructions
1. Determine the following measures for 2015 and 2014, rounding to one decimal place. Industry averages are provided in parentheses after each ratio.
a. Current ratio (1.9:1)
b. Accounts receivable turnover (13.6 times)
c. Inventory turnover (5.8 times)
d. Total asset turnover (1.5 times)
e. Debt ratio (56%)
f. Profit margin (3.1%)
g. Return on assets (4.6%)
h. Return on shareholders' equity (10.5%)
2. Identify whether the liquidity, efficiency, solvency, and profitability ratios have improved or declined since 2014.
3. How does Design Extravaganza Ltd. compare to the industry averages?

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2014 2013 2015 Income Statement $ 711,704 $ 452,898 Sales Cost of sales 316.757 229.812 394,947 223,086 Gross profit Operating and other expenses Income before income taxes 211.670 183,277 136,376 86,710 28,429 Income taxes 61,080 $ 58,281 $ 122,197 Net income Statement of Financial Position Current assets $ 159,573 $ 316,286 Cash $ 4,029 Accounts receivable 9,116 8,238 Inventories 57.469 44.070 52.051 Other current assets 6.408 4,529 Total current assets 389,279 216,410 Property, plant, and equipment Other assets 70.954 61,591 39.069 29.257 $ 499,302 $ 85,364 $ 307,258 $ 58,678 Total assets 211,636 Current liabilities 19.645 15.472 Long-term liabilities Shareholders' equity 394,293 233,108 154,842 $ 499,302 Total liabilities and shareholders' equity $ 307,258