单选题
An analyst gathered the following data about a company:
The company's return on equity: A. decreased because the company's profit margin fell. B. increased because the company's leverage multiplier rose. C. increased because the company's asset turnover increased.
|
2006 |
2007 | |
|
EBIT margin (EBIT/revenue) |
0.15 |
0.10 |
|
Asset turnover(revenue/assets) |
1.5 |
1.8 |
|
Leverage multiplier(assets/equity) |
1.5 |
1.6 |
|
Tax bueden( net income/REBT) |
0.7 |
0.7 |
|
Interest burden (EBT/EBIT) |
0.85 |
0.85 |
【正确答案】
A
【答案解析】
ROE 2006=0.7×0.85×0.15×1.5×1.5=0.2008
ROE 2007=0.7×0.85×0.10×1.8×1.6=0.1714
Profit margin fell, and the increase in the total asset turnover ratio and the leverage multiplier were not enough to offset the decline, so ROE fell.