Ratio analysis.
The following is a 5-year comparative analysis of Accent Company's return on assets and return on equity.
|
|
2005
|
2006
|
2007
|
2008
|
2009
|
|
Return on assets
|
8%
|
7.5%
|
7.12%
|
6.54%
|
6%
|
|
Return on equity
|
20%
|
21 %
|
21.8%
|
22.2%
|
23%
|
a. What does this analysis tell you about the overall profitability of Accent Company over the 5-year period?
b. What does this analysis tell you about what has happened to Accent's amount of debt over the past 5 years?