Question: Refer to the information for Adrian Express in E12-5. Industry averages for the following profitability ratios are as follows:
Gross profit ratio 45%
Return on assets 25%
Profit margin 15%
Asset turnover 2.5
times Return on equity 35%
Required: 1. Calculate the five profitability ratios listed above for Adrian Express.
2. Do you think the company is more profitable or less profitable than the industry average? Explain your answer.