Delicious Limited competes in the fast food industry with Scrumptious Limited. Delicious embarked on a major expansion in 2015, borrowing a large amount of money and acquiring a small competitor. The acquisition doubled the number of restaurants that Delicious has. Scrumptious, on the other hand, took a more conservative approach and did not buy any new assets, focusing instead on a strategy of making existing operations more efficient.

Data for the two companies are provided below in thousands of dollars:

                                    

Instructions
(a) Calculate the (1) profit margin, (2) asset turnover, and (3) return on asset ratios for each company in 2014 and 2015.
(b) Provide an explanation for the year-over-year changes in the ratios calculated in part (a).