Listed$$ here, are the $2018$ and $2019$ balance sheets

Otago Bay Marine Motors Balance Sheets $($$ in thousands$)$

As of December $31,$

$20192018$

Assets

Current assets

Cash and cash equivalents $54,58888,637$

Accounts receivable, net of allowances $18,37413,778$

Inventories $28,91325,939$

Prepaid expenses $4,4727,052$

Total current assets $106,347135,406$

Property, plant, and equipment, at cost $135,97883,999$

Less: Accumulated depreciation and amortization $-50,282-42,979$

Net fixed assets $85,69641,020$

Other assets $109,03841,705$

Total assets $301,081218,131$

Liabilities and Shareholders' Equity

Current liabilities

Notes and accounts payable $28,2692,459$

Dividends payable $809893$

Accrued liabilities $21,95214,448$

Total current liabilities $51,03017,800$

Noncurrent liabilities

Long$-$term debt $40,89518,340$

Shareholders' equity

Common stock $5,1407,599$

Capital in excess of par value $110,82787,604$

Retained earnings $93,18986,788$

Total shareholders' equity $209,156181,991$

Total liabilities and equity $301,081218,131$

Average number of common shares outstanding $10,829,00010,829,000$

and income statements

Otago Bay Marine Motors Income Statements $($$ in thousands$)$

For the Year For the Year

Ended December $31,$ Ended December $31,$

$20192018$

Sales revenue $259,917245,272$

Cost of goods sold $134,127126,441$

Gross profit margin $125,790118,831$

Operating expenses $70,10469,809$

Earnings from operations $55,68649,022$

Other income $($expense$),$ net $4,0782,772$

Earnings before income taxes $59,76451,794$

Provision for income taxes $22,71019,682$

Net earnings $37,05432,112$

Cash dividends $($$$0\mathrm{.}37$ and $$0\mathrm{.}27$ per share$)4,0072,924$

Average price per share of common stock

$($in the fourth quarter of the year$)74\mathrm{.}9282\mathrm{.}34$

for Otago Bay Marine$$ Motors, a major manufacturer of$$ top$-$of$-$the$-$line outboard motors.

a$.$ On the basis of the information$$ provided, calculate the following financial ratios for $2018$ and $2019$:

Otago Bay Marine Motors

$20192018$ Industry Averages

$($for $2010)$

Current ratio $2\mathrm{.}24$

Total asset turnover $1\mathrm{.}30$

Debt$-$equity ratio $8\mathrm{.}93\%$

Net profit margin $9\mathrm{.}34\%$

ROA $16\mathrm{.}32\%$

ROE $19\mathrm{.}30\%$

EPS $$1\mathrm{.}61$

P$/$E ratio $19\mathrm{.}07$

Dividend yield $0\mathrm{.}44\%$

Payout ratio $26\mathrm{.}12\%$

Price$-$to$-$book$-$value ratio $6\mathrm{.}73$

b$.$ Considering the financial ratios you$$ computed, along with the industry$$ averages, how would you characterize the financial condition of Otago Bay Marine$$ Motors? Explain.