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Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions): Allied Construction 2024 2023 Sales $56,000 $42,000 Net

Allied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):

Allied Construction 2024 2023
Sales $56,000 $42,000
Net income 3,400 3,500
Total assets 30,000 20,000

Axis Construction 2024 2023
Sales $88,000 $77,000
Net income 3,400 4,500
Total assets 54,000 59,000

Required:

1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2024.

2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2024.

3-a. Which company has the better profit margin?

3-b. Which company has the better asset turnover?

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