Financial Ratios and Performance Following is financial information for three ventures: After-tax Profit Margins Venture XX 5% Venture YY 15% Venture ZZ 25% Asset Turnover (times) 3 ROA % 10% 15% 75% 5 B. Which venture is indicative of a strong entrepreneurial venture opportunity? Venture ZZ 5 C. Which venture seems to be more of a commodity type business? Answer: Venture ZZ D. How would you place these three ventures on a graph similar to Figure 2.10? FIGURE 2.10 Return on Assets (ROA) Model Net Profit Margins High Moderate Case 1 Higher ROA Low Low Moderate Asset Turnover Ratios Case 2 High