Question: Using the table below, you are asked to calculate three-factor ROE decomposition (i.e., calculate ROE and its components) for all three of the following companies.
Using the table below, you are asked to calculate three-factor ROE decomposition (i.e., calculate ROE and its components) for all three of the following companies. What would you advise each company to do to improve its ROE? Please round your answer to two decimal places.
| MTR | TKO | NRM | |
| Sales | 1300 | 7300 | 8000 |
| Net Income | 300 | 100 | 300 |
| Average Assets | 2600 | 1500 | 1800 |
| Average Equity | 1000 | 1200 | 600 |
| Average Liabilities | 1600 | 300 | 1200 |
| ROE |
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| Net Profit Margin |
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| Turnover Ratio |
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| Leverage |
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