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

Current Year

Prior Year

Net sales

$

1,272,087

$

1,272,087

Net income

49,796

24,735

Average shareholders equity

123,445

144,536

Average total assets

386,143

384,728

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?