The following selected ratios have been chosen for two companies in different industries:
_________________Return on Assets Asset Turnover Profit Margin
Company A........................7.2%..........................3.5 times.........................2.1%
Company B........................3.4%..........................0.5 times.........................6.8%
One company is Costco Wholesale Corporation in the retail industry; the other is Suncor Energy Inc. in the oil and gas industry.
Instructions
Identify whether Company A or Company B is likely Costco, operating in the retail industry. Explain.