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Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7. Manufacturer B has a profit margin of 2.5%, an asset turnover of
Manufacturer A has a profit margin of 2.2%, an asset turnover of 1.7. | ||||
Manufacturer B has a profit margin of 2.5%, an asset turnover of 1.2. | ||||
What is true about these businesses from looking at these ratios? |
Firm B sells their product at a higher price
Firm B generates sales from their assets more efficiently than firm B
Firm B has a lower Return on Assets
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