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The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60%

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The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60% 4.13% Profit Margin 3.2% 2.9% 3.1% Assets Turnover 0.90 0.88 0.99 Accounts receivable Turnover 6.2 11.5 118.4 Inventory Turnover 6.1 6.0 5.8 Fixed Assets Turnover 1.3 1.4 1.5 collection period 58.6 31.7 3.1 inventory period 59.6 60.9 62.5 %change in sales 7.66% 9.68% 1. Explain the decrease in ROA between year 5 and year 6? And the increase between year 5 and 6? The following are financial ratios for the company. You are required to answer the following questions. Year 5 Year 6 Year 7 ROA 2.87% 2.60% 4.13% Profit Margin 3.2% 2.9% 3.1% Assets Turnover 0.90 0.88 0.99 Accounts receivable Turnover 6.2 11.5 118.4 Inventory Turnover 6.1 6.0 5.8 Fixed Assets Turnover 1.3 1.4 1.5 collection period 58.6 31.7 3.1 inventory period 59.6 60.9 62.5 %change in sales 7.66% 9.68% 1. Explain the decrease in ROA between year 5 and year 6? And the increase between year 5 and 6

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