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Canton Corp. and Miller Corp. operate in the same industry and are direct competitors. Summary financial information is below. As you can see from the
Canton Corp. and Miller Corp. operate in the same industry and are direct competitors. Summary financial information is below. As you can see from the data, the two companies generated the same income. From the ratio analysis, we see that Canton's ROE is much higher than Miller's, while ROA is similar for the two companies. Explain how a company can report a much higher ROE than its competitor, but only slightly higher ROA. [Input your response below. Suggested length of 46 sentences.]
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