interpret the below formulaes by explaining the purpose of the formulas and how the organization performed in 2018 compared to 2017.

SOLVENCY RATIOS Turnover ratios 2017 2018 61% 64% 8 - 6 6 23 16 2 2 2017 1,71 1,52 0,17 2018 1,50 1,34 0,16 Asset turnover ratio Invetory turnover ratio accounts payables turnover accounts receivables turnover accounts receivables turnover Liquidity Ratio Current ratio= CA/ CL Quick ratio = (CA- stock)/ CL Cash ratio = Cash/ CL Financial risk ratio Debt to equity ratio Debt ratio =Total liabilties/ Total assets equity ratio=Equity / Total assets OPERATING PERFORMANCE operating efficiency ratio Debtors days debtors days creditors days Inventry days days Cash conversion cycle (CCC) 2,10 70% 30% 2017 2,13 70% 30% 2018 23 16 242 60 233 61 48 9 47 2017 2018 5% 6% Profitability ratio Return on capital employed Return on investment Return on equity return on sales Net profit margin 12% 5% 3% 3% 9% 3% 5% 2018 5% 61% 304% 9% 6% 2017 6% 64% 302% 12% 4% Net profit margin total asset turnover Financial leverage = total assets/total equity ROE ROA 3%