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An analyst gathered the following data for a company Item 2018 2019 2020 ROE 19.8% 20.0% 22.0% Return on total assets 8.1% 8.0% 7.9% Total

An analyst gathered the following data for a company

Item

2018

2019

2020

ROE

19.8%

20.0%

22.0%

Return on total assets

8.1%

8.0%

7.9%

Total asset turnover

2

2

2.1

Based only on the information above, the most appropriate conclusion is that, over the period 2018 to 2020, the companys

net profit margin and financial leverage have increased.

net profit margin and financial leverage have decreased.

non is correct

net profit margin has decreased but its financial leverage has increased

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