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A company has the following information ratios and corresponding industry average: Company Industry Average Asset turnover 1.0x 1.5x Operating Profit Margin 9.0% 6.0% What is
A company has the following information ratios and corresponding industry average: | ||||
Company | Industry Average | |||
Asset turnover | 1.0x | 1.5x | ||
Operating Profit Margin | 9.0% | 6.0% | ||
What is true about this business from looking at these ratios? |
A. This company needs to make more investment in their average project than their industry peers
B. This company has a better return on assets than their industry peers.
C. This company does not generate cash flow from their sales as efficiently as the industry.
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