Caren Company and Revlon Company are similar firms that operate in the same industry. Revlon began operations in 2009 and Caren in 2006. In 2011, both companies pay 7% interest on their debt to creditors. The following additional information is available.

Write a half-page report comparing Caren and Revlon using the available information. Your analysis should include their ability to use assets efficiently to produce profits. Also comment on their success in employing financial leverage in2011.

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Caren Company Revion Company 2011 3.0 6.9% 2.3% 2010 2009 2011 2010 2009 Total asset turnover Return on total assets Profit margin ratio 2.7 6.5% 2.4% 3.1% 28% 6.4% 4.3% 2.2% 2.7% 2.9%