Kampa Company and Arb or Co mpany are sinmilar fi ms that operate in t he sa me induastry. Arbor began operations in 2001 and Ka mpa in 1995. In 20 06, both companies pay 79% interest on their debt to creditors. The following additional information is available: KAMPA COMPANY ARBOR COMMPANY 2006 2005 2004 2006 2005 2004 2.7 Total a sset turnover Return on total assets Profit margin 3.0 8.9% 2.3% $400,000 9.5% 2.4% $370,000 2.9 8.7% 2.2% $386.000 1.6 5.8% 2.7% $200,000 1.4 5.5% 2.9% $160,000 1.1 5.2% 2.8% $100,00o Sales -.- Write a one-halfpage rep ort conmparing Kampa and Arbor using the available information. Your discussion sh ould include their ability t o use assets efficiently to produce profits. Als o com ment on their success in employ ing financial leverage in 2 006.
Kampa Company and Arb or Co mpany are sinmilar fi ms that operate in t he sa me induastry. Arbor began operations in 2001 and Ka mpa in 1995. In 20 06, both companies pay 79% interest on their debt to creditors. The following additional information is available: KAMPA COMPANY ARBOR COMMPANY 2006 2005 2004 2006 2005 2004 2.7 Total a sset turnover Return on total assets Profit margin 3.0 8.9% 2.3% $400,000 9.5% 2.4% $370,000 2.9 8.7% 2.2% $386.000 1.6 5.8% 2.7% $200,000 1.4 5.5% 2.9% $160,000 1.1 5.2% 2.8% $100,00o Sales -.- Write a one-halfpage rep ort conmparing Kampa and Arbor using the available information. Your discussion sh ould include their ability t o use assets efficiently to produce profits. Als o com ment on their success in employ ing financial leverage in 2 006.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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