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He following data relates to a company in the manufacturing sector in Kenya for the year ending 31 December 2019

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He following data relates to a company in the manufacturing sector in Kenya for the year ending 31 December 2019.

Kshs. “000”

Sales
25,678

Total Assets
49,579

Total Liabilities
5,044

Retained Earnings
1,77

Working Capital
-1,777

Earnings before Interest and Taxes
2,605

Market value of Equity
10,098

Book value of Total Liabilities
5,044

The company is paying interest on a long-term debt instrument amounting to Kshs. 905,000 per year and that the company’s total liabilities is constituted in the ratio of 2:5 between current and non-current components.
Using the Springate model assess the financial health of the company
                                                                                                            (3 Marks)
Taking each variable above explain how the management of the above company can improve the financial health of this company