Profitability ratios

The following selected data were taken from the financial statements of Vidahill Inc. for December $31,20$Y$7,20$Y$6,$ and $20$Y$5$:

A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.

$20Y7$

$20Y6$

Return on total assets

Return on stockholders' equity

Return on common stockholders' equity

b$.$ The profitability ratios indicate that the company's profitability has

Z$.$ Since the return on assets is

the return on stockholders' equity in both years, there must be

: leverage from the use of debt.