An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return
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An analyst compiles the following data for a company:
FY13 FY14 FY15 ROE 19.8% 20.0% 22.0%
Return on total assets 8.1% 8.0% 7.9%
Total asset turnover 2.0 2.0 2.1 Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company’s:
A . net profi t margin and fi nancial leverage have decreased.
B . net profi t margin and fi nancial leverage have increased.
C . net profi t margin has decreased but its fi nancial leverage has increased.
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Related Book For
International Financial Statement Analysis
ISBN: 9781118999479
3rd Edition
Authors: Thomas R. Robinson, Elaine Henry, Wendy L. Pirie
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