Deepa Company and Aryan Company are similar firms that operate in the same industry. Aryan began operations in 2001 and Deepa in 1995. In 2006, both companies pay 7% interest on their debt to creditors. The following additional information is available:

DEEPA COMPANY ARYAN COMPANY

2019 2018 2017 2019 2018 2017

Total asset turnover . . . . . . 3.0 2.7 2.9 1.6 1.4 1.1

Return on total assets . . . . 8.9% 9.5% 8.7% 5.8% 5.5% 5.2%

Profit margin . . . . . . . . . . . 2.3% 2.4% 2.2% 2.7% 2.9% 2.8%

Sales . . . . . . . . . . . . . . . . . $400,000 $370,000 $386,000 $200,000 $160,000 $100,000

compare Deepa and Arya using the available information. Your discussion should include their ability to use assets efficiently to produce profits. Also comment on their success in employing financial leverage in 2019.