For each of the following profitability ratios, indicate whether the change would be viewed as an improvement
Question:
(a) An increase in the gross profit margin
(b) A decrease in asset turnover
(c) An increase in return on equity
(d) A decrease in earnings per share
(e) A decrease in the profit margin?
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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