MAX |
AXIS |
|||||
Year |
2006 |
2005 |
2004 |
2006 |
2005 |
2004 |
Total asset turnover |
4.0 |
3.7 |
3.9 |
2.6 |
2.4 |
2.1 |
Return on total assets |
9.9% |
10.5% |
9.7% |
6.8% |
6.5% |
6.2% |
Profit margin |
3.3% |
3.4% |
3.2% |
3.7% |
3.9% |
3.8% |
Sales (RM) |
500,000 |
470,000 |
486,000 |
300,000 |
260,000 |
200,000 |
Both companies pays 7% interest on their debt to creditors.
Analyze the above available information for MAX and AXIS. Write a half-page report comparing MAX and AXIS. Include in your discussion the growth pattern for each company; their ability to use assets efficiently to produce profits. Also comment on their success in using financial leverage in 2006.
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