Paw Locker has the highest Return on Assets in its comparison group.

Which of the following could be a

secret to its success? (check all that apply) (Hint: look carefully at the denition of ROA to nd only the

items that will aect the ratio)

Company

Return

on

Equity

Return

on Assets

Financial

Leverage

Return

on Sales

Asset

Turnover

Dog Nation

0.177

0.060

3.740

0.026

2.338

Dog Shoe

Warehouse

0.178

0.119

1.501

0.065

1.828

Hound

Smart

0.177

0.112

1.762

0.038

2.930

Paw Locker

0.177

0.126

1.430

0.065

1.927

Pooch Mart

0.177

0.111

1.639

0.057

1.938

1

point

Uses less debt nancing than Hound Smart

Holds lower inventory levels than Dog Shoe Warehouse

Uses more equity nancing than Dog Nation

Able to charge a higher price than Pooch Mart

Pays less interest expense than Pooch Mart