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Sheridan Limited competes in the fast food industry with Concord Limited. Sheridan underwent a major expansion in 2021, borrowing a large amount of money and

Sheridan Limited competes in the fast food industry with Concord Limited. Sheridan underwent a major expansion in 2021, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Sheridan has. Concord, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on making existing operations more efficient. Data for the two companies are provided below (in thousands of dollars):

2021 2020 2019
Sheridan
Total assets $2,200 $1,072 $900
Sales 2,975 1,630 1,600
Net income 358 150 140
Concord
Total assets 778 819 900
Sales 1,788 1,530 2,000
Net income 170 213 210

(a) Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2020 and 2021.

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