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Calculate the Return on Asset ratio and Asset Turnover ratio on the two companies provided. Company A Company B Average total assets $150,000 $200,000 Sales
Calculate the Return on Asset ratio and Asset Turnover ratio on the two companies provided.
Company A | Company B | |
---|---|---|
Average total assets | $150,000 | $200,000 |
Sales | $500,000 | $1 million |
Net Income | $250,000 | $200,000 |
Interest Expense | $600 | $850 |
Which company has performed better?
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