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$150,000 $200,000 Financial-Ratio Analysis $150.000 $50.000 25 The following data are available for two companies Company A and Company B, all stated in thousands

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$150,000 $200,000 Financial-Ratio Analysis $150.000 $50.000 25 The following data are available for two companies Company A and Company B, all stated in thousands of dollars $30,000 $600,000 Description Company A Company 8 0000015 Total revenue $42,905,000 $23,253,000 Earnings before $12,066,000 $8,464,000 $500.000 interest and taxes $211,000 iders' Equity Interest expenses 50 $630,000 $50,000 Eamings before tax $12.066.000 $7,834,000 $100.000 Tuxes at 40% $3,831,000 $2.241,000 $40,000 Eamings after tax $8,235,000 $5.593,000 $400,000 $100000 Deb Equity $150,000 $15,861,000 $22.326,000 $31,640,000 $25,090,000 (a) Calculate each company's return on equity (ROE) and return on assets (ROA). $150.000 (b) Which company has performed better in terms $70,000 of profitability?

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