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Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak started 5 years
Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations 2 years ago and Roak started 5 years ago. In the current year, both companies pay 9% interest on their debt to creditors. The following additional information is available. Roak Company Clay Company Current Year 1 Year Ago 2 Years Ago Current Year 1 Year Ago 2 Years Ago Total asset turnover 4.5 4.2 4.4 2.9 2.9 2.5 Return on total assets 11.0% 12.4% 13.0% 7.9% 7.6% 7.3% Profit margin ratio 3.8% 3.9%
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