Q29. Assume U.S.GAAP (generally accepted accounting principles) applies unless otherwise noted. An analyst has calculated the following ratios from a company's financial statements: Year ended 31 December | 2003 | 2004 | Return on Equity | 16.8% | 18.0% | Return on Total Assets | 10.5% | 10.0% | Net Profit Margin | 4.2% | 4.0% |
Based on the information above, during 2004, did the company experience an increase in the:
| Financial leverage ratio? | Asset turnover ratio? | A. | No | No | B. | No | Yes | C. | Yes | No | D. | Yes | Yes |
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