Papa John's is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected income statement and balance sheet amounts (in millions).
2010 2009
Total Revenues..................... $1,126.............................. $1,079
Net Income............................. 52.................................... 57
Total Assets, beginning of year..... 394................................. 386
Total Assets, end of year............ 416................................. 394
Required:
1. Compute the asset turnover and net profit margin ratios for 2010 and 2009.
2. Would analysts more likely increase or decrease their estimates of stock value on the basis of these changes? Explain by interpreting what the changes in these two ratios mean.