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Compare each ratio between the two companies and interpret. Be sure to explain which company had the better ratio and why. 1. ROE Company A:
Compare each ratio between the two companies and interpret. Be sure to explain which company had the better ratio and why.
1. ROE
Company A:
2018: 3.75%
2019: 3.04 %
Company B:
2018: 32.27%
2019: 33.67%
2. ROA
Company A:
2018 2.10%
2019: 1.54%
Company B:
2018: 6.15%
2019: 7.11%
3. Net Profit Margin
Company A:
2018: 3.78%
2019: 3.16%
Company B:
2018: 12.26%
2019: 15.01%
4.Total Asset Turnover Ratio
Company A
2018: .55
2019: .49
Company B
2018: .50
2019: .47
5. Fixed Asset Turnover Ratio-
Company A:
2018: 1.35
2019: 1.82
Company B:
2018: 1.47
2019: 1.46
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