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Given the financial data for Company O5 and Company P5: Criteria Company O5 Company P5 Net Income $6,000,000 $5,700,000 Total Assets $60,000,000 $57,000,000 Total Liabilities

Given the financial data for Company O5 and Company P5:

Criteria

Company O5

Company P5

Net Income

$6,000,000

$5,700,000

Total Assets

$60,000,000

$57,000,000

Total Liabilities

$53,000,000

$51,000,000

Calculate the return on assets (ROA) for both companies and discuss which company appears to be more efficient in generating profits relative to its assets.

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