Two brewing companies that compete against each other are Northern Ale Ltd. (NAL) and Brew Right Inc. (BRI). The industry is experiencing a slump and each company has undertaken a different strategy to adapt to this situation. NAL has adopted an expansion strategy by borrowing funds to purchase another company. This has boosted 2015 sales by 67% and 2015 profit by 47%, which the company CEO has mentioned in several press releases. BRI has decided to streamline operations and cut costs by looking at more efficient ways to operate the business.

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

                            

Instructions
(a) Calculate the profit margin, asset turnover, and 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).
(c) Comment on which company has been more successful in executing its strategy.