Andruski Company and Brar Company both manufacture school science equipment. The following financial information is for three years ended December 31 (in thousands):

Instructions
a. Calculate the asset turnover and return on assets ratios for both companies for 2023 and 2024. Round your answers to two decimal points.
b. Comment on how effective each of the companies is at using its assets to generate sales and produce profit.

Taking It Further

After reading the notes to the financial statements, you have determined that Andruski Company uses diminishing-balance depreciation and Brar uses straight-line. Does this affect your ability to compare these two companies?

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Andruski Company Net sales Profit Total assets Brar Company Net sales Profit Total assets 2024 $552.0 21.4 702.5 2024 $1,762.9 96.5 1,523.5 2023 $ 515.9 20.6 662.8 2023 $1,588.2 85.4 1,410.7 2022 $469.0 18.7 602.5 2022 $1,484.3 79.8 1,318.4