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 this information, 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.
C. net profit margin has decreased but its financial leverage has increased.