The following information is available about the return on assets (ROA) for a company and the industry in which it operates: Company Industry Net profit margin(Net income/Revenues) 10.00 Asset turnover(Revenues/Total assets) 1.5 times 1.2 times ROA 15.00 An investor can conclude that compared with the industry, the company:
1) is riskier.
2) uses its assets more effectively.
3) generates more earnings per dollar of revenue earned.
