An analyst compiles the following data for a company: Based only on the information above, the most

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An analyst compiles the following data for a company:

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Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company’s:
A. net profit margin and financial leverage have decreased.
B. net profit margin and financial leverage have increased.
C. net profit margin has decreased but its financial leverage has increased.

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International Financial Statement Analysis CFA Institute Investment Series

ISBN: 9780470287668

1st Edition

Authors: Thomas R. Robinson, Hennie Van Greuning CFA, Elaine Henry, Michael A. Broihahn, Sir David Tweedie

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Question Posted: Feb 14, 2024 09:00 AM

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An analyst compiles the following data for a company: Based only on the information above, the most

Question:

ROE Return on total assets Total asset turnover FY13 19.8% 8.1% 2.0 FY14 20.0% 8.0% 2.0 FY15 22.0% 7.9% 2.1

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To answer the question we need to analyze the change in net profit margin and financial leverage over the period from FY13 to FY15 using the data prov...View the full answer

International Financial Statement Analysis CFA Institute Investment Series

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