Paw Locker has the highest Return on Assets in its comparison group. Which of the following could be a secret to its success? (select all that apply) (Hint: look carefully at the definition of ROA to find only the items that will affect the ratio)
| Company |
Return on Equity |
Return on Assets |
Financial Leverage |
Return on Sales |
Asset Turnover |
| Dog Nation |
0.177 |
0.060 |
3.740 |
0.026 |
2.338 |
| Dog Shoe Warehouse |
0.178 |
0.119 |
1.501 |
0.065 |
1.828 |
| Hound Smart |
0.177 |
0.112 |
1.762 |
0.038 |
2.930 |
| Paw Locker |
0.177 |
0.126 |
1.430 |
0.065 |
1.927 |
| Pooch Mart |
0.177 |
0.111 |
1.639 |
0.057 |
1.938 |
a. Able to charge a higher price than Pooch Mart
b. Holds lower inventory levels than Dog Shoe Warehouse
c. Uses more equity financing than Dog Nation
d. Pays less interest expense than Pooch Mart
e. Uses less debt financing than Hound Smart