Question: PLEASE EXPLAIN STEP BY STEP :) An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return on total
PLEASE EXPLAIN STEP BY STEP :)
An analyst compiles the following data for a company:
| FY13 | FY14 | FY15 | |
| ROE | 19.8% | 20.0% | 22.0% |
| Return on total assets | 8.1% | 8.0% | 7.9% |
| Total asset turnover | 2.0 | 2.0 | 2.1 |
Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company's:
|
| net profit margin and financial leverage have decreased. |
|
| net profit margin and financial leverage have increased. |
|
| net profit margin has decreased but its financial leverage has increased. |
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