$27$

Multiple Choice $3\mathrm{.}75$ points

You have calculated the following financial statement ratios for Hendricks Corporation.

$2018$ Profit Margin: $17\mathrm{.}73\%2018$ Asset Turnover: $0\mathrm{.}69$

$2019$ Profit Margin: $10\mathrm{.}34\%2019$ Asset Turnover: $0\mathrm{.}70$

What is the primary cause of the change in Hendricks Corporation's Return on Assets from $2018$ to $2019?$

Increase in efficiency

Increase in profitability

Decrease in profitability