Transcribed Image Text: 17 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

Transcribed Image Text: 17 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:
A
net profit margin and financial leverage have decreased.
B
net profit margin and financial leverage have increased.
net profit margin has decreased but its financial leverage has increased.

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