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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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