Question 12 pts

The following ratios were computed from the financial statement of Darren Technologies:

	2018	2017	2016
Return on equity	0.30	0.27	0.23
Return on assets	0.17	0.20	0.22
Common equity leverage	0.87	0.90	0.92
Capital structure leverage	2.22	1.60	1.24
Profit margin	0.11	0.10	0.09
Asset turnover	1.69	2.27	2.87

Which of the following statements is true?

Group of answer choices

There has been a steady decline in ROE from 2016 through 2018.

The increase in ROA is due primarily to the changes in asset turnover.

The changes in ROA could be due to increasing sales.

The change in ROA could be due to a large increase in the asset base of the company.