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2. Mars Technology (MT) reports the following pattern in selected financial ratios: Year 2017 2018 2019 2020 ROA 11.1% 7.25%
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A. Ratio of ROA is declining and TIE is also decreasing . This decrease is due to decrease in EBIT and Net Income. The gross profits are decreasing . This might be due to lower sales due to higher competition.TIE would have decreased due to increase in interest payments due to higher debt levels.

B. Issuing new bonds would help in raising capital for more investment. This might increase sales, which in return might increase operating profits and net profit. This would increase ROA and increase TIE

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