$12-$ the company$$s total assets at year$-$end FY$9$ were GBP $3,500$ million. Which of the following choices best describes reasonable conclusions an analyst might make about the company$$s efficency?

Comparing FY$14$ with FY$10,$ the company$$s e& ciency improved, as indicated by a

total asset turnover ratio of $0\mathrm{.}86$ compared with $0\mathrm{.}64.$

$280$

International Financial Statement Analysis

B $.$

Comparing FY$14$ with FY$10,$ the company$$s e& current ratio.

C

$.$

Comparing FY$14$ with FY$10,$ the company$$s e& growth faster than turnover revenue growth.

$13$

$.$

Which of the following choices best t

describes reasonable conclusions an analyst might

make about the company$$s solvency? A

$.$

Comparing FY$14$ with FY$10,$ the company$$s solvency improved, as indicated by an increase in its debt$-$to$-$assets ratio from $0\mathrm{.}14$ to $0\mathrm{.}27.$

B $.$

Comparing FY$14$ with FY$10,$ the company$$s solvency deteriorated, as indicated by a

decrease in interest coverage from $10\mathrm{.}6$ to $8\mathrm{.}4.$ C

$.$

Comparing FY$14$ with FY$10,$ the company$$s solvency improved, as indicated by the growth in its pro#

ts to GBP $645$ million.

$14$

$.$

Which of the following choices best t

describes reasonable conclusions an analyst might

make about the company$$s liquidity? A

$.$

Comparing FY$14$ with FY$10,$ the company$$s liquidity improved, as indicated by an increase in its debt$-$to$-$assets ratio from $0\mathrm{.}14$ to $0\mathrm{.}27.$

B $.$

Comparing FY$14$ with FY$10,$ the company$$s liquidity deteriorated, as indicated by a

decrease in interest coverage from $10\mathrm{.}6$ to $8\mathrm{.}4.$ C

$.$

Comparing FY$14$ with FY$10,$ the company$$s liquidity improved, as indicated by an increase in its current ratio from $0\mathrm{.}71$ to $0\mathrm{.}75.$

$15$

$.$

Which of the following choices best t describes reasonable conclusions an analyst might

make about the company$$s pro# tability?

A

$.$

Comparing FY$14$ with FY$10,$ the company$$s pro# an increase in its debt$-$to$-$assets ratio from $0\mathrm{.}14$ to $0\mathrm{.}27.$

B $.$

Comparing FY$14$ with FY$10,$ the company$$s pro#

a decrease in its net pro# t margin from $11\mathrm{.}0$ percent to $5\mathrm{.}7$ percent.

C

$.$

Comparing FY$14$ with FY$10,$ the company$$s pro# the growth in its shareholders$$ equity to GBP $6,165$ million.

$16$

$.$

Assuming no changes in other variables, which of the following would decrease ROA? A

$.$

A decrease in the e$ ective tax rate.