TheThe answer to the given question is provided below:Ratio analysis is a financial analysis tool that is used to identify the financial health and performance of a company. It is the process of calculating financial ratios, which are then compared with industry averages or a company’s past performance. The given question is related to the 1-25 ratio analysis, so we will calculate the following ratios for the given financial statements. Liquidity ratios:1. Current ratio2. Quick ratio (acid-test ratio) Profitability ratios:3. Gross profit margin ratio4. Operating profit margin ratio5. Net profit margin ratio6. Return on equity (ROE)7. Return on assets (ROA) Efficiency ratios:8. Asset turnover ratio9. Inventory turnover ratio10. Days sales outstanding ratio11. Days inventory ratio12. Fixed asset turnover ratio Solvency ratios:13. Debt-to-equity ratio14. Debt-to-asset ratio15. Times interest earned (interest coverage) ratio Here are the calculations for the given ratios: Liquidity ratios: 1. Current ratioCurrent ratio = Current Assets / Current LiabilitiesCurrent ratio in 2020 = $1,500,000 / $500,000 = 3Current ratio in 2021 = $1,800,000 / $600,000 = 3 2. Quick ratio (acid-test ratio)Quick ratio = (Current Assets - Inventory) / Current LiabilitiesQuick ratio in 2020 = ($1,500,000 - $300,000) / $500,000 = 2.4Quick ratio in 2021 = ($1,800,000 - $360,000) / $600,000 = 2.4 Profitability ratios:3. Gross profit margin ratioGross profit margin ratio = (Revenue - Cost of goods sold) / RevenueGross profit margin ratio in 2020 = ($5,000,000 - $3,000,000) / $5,000,000 = 0.40 or 40%Gross profit margin ratio in 2021 = ($6,000,000 - $3,600,000) / $6,000,000 = 0.40 or 40%4. Operating profit margin ratioOperating profit margin ratio = Operating profit / RevenueOperating profit margin ratio in 2020 = $500,000 / $5,000,000 = 0.10 or 10%Operating profit margin ratio in 2021 = $540,000 / $6,000,000 = 0.09 or 9%5. Net profit margin ratioNet profit margin ratio = Net profit / RevenueNet profit margin ratio in 2020 = $250,000 / $5,000,000 = 0.05 or 5%Net profit margin ratio in 2021 = $200,000 / $6,000,000 = 0.03 or 3%6. Return on equity (ROE)ROE = Net profit / Shareholders’ equityROE in 2020 = $250,000 / $1,500,000 = 0.17 or 17%ROE in 2021 = $200,000 / $2,200,000 = 0.09 or 9%7. Return on assets (ROA)ROA = Net profit / Total assetsROA in 2020 = $250,000 / $2,500,000 = 0.10 or 10%ROA in 2021 = $200,000 / $3,000,000 = 0.07 or 7% Efficiency ratios:8. Asset turnover ratioAsset turnover ratio = Revenue / Total assetsAsset turnover ratio in 2020 = $5,000,000 / $2,500,000 = 2Asset turnover ratio in 2021 = $6,000,000 / $3,000,000 = 2 Solvency ratios:13. Debt-to-equity ratioDebt-to-equity ratio = Total liabilities / Shareholders’ equityDebt-to-equity ratio in 2020 = $1,000,000 / $1,500,000 = 0.67Debt-to-equity ratio in 2021 = $1,200,000 / $2,200,000 = 0.55Therefore, as the given data is incomplete, we cannot calculate the Times interest earned (interest coverage) ratio.