An analyst gathered the following data for a company:
|
2003 |
2004 |
2005 |
|
|
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 2003 to 2005, 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.