Question
Identify a number of factors that contribute to the larger ROA for the firm with the larger ROA. Are there other factors that have an
Identify a number of factors that contribute to the larger ROA for the firm with the larger ROA. Are there other factors that have an important effect on which firm has the larger ROA? Identify at least two additional factors beside accounts receivable, inventory, fixed asset turnover ratios, and cost of goods sold to revenue ratio. Typically, these would be two new ratios. For example, does one firm have higher ratio of selling, general and administrative expenses (or some other expense) to revenues or does one firm have a higher turnover ratio for some asset turnover ratio that we did not examine? Explain how the additional factors affect ROA. It is fine for the additional factors to not help explain the observed pattern, as long as you note that
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