Papa Joes is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected earlier years income statement and balance sheet amounts (dollars in thousands).

	Current Year		Prior Year
Net sales	$	1,272,087	$	1,272,087
Net income		54,796		30,735
Average shareholders' equity		125,445		136,536
Average total assets		397,143		396,728

Required:

1. Compute ROA for the current and prior years. (Round your answers to 3 decimal places.)

2. Would security analysts more likely increase or decrease their estimates of share value on the basis of this change?

multiple choice

• Increase

• Decrease