Explain return-on-assets ratio all state trucking co, Accounting Basics

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Explain return-on-assets ratio all state trucking co

Problem:

All State Trucking Co. has the following ratios compared to its industry for 2010.

	AllState Trucking	Industry
Return on sales	3%	8%
Return on assets	15%	10%

Explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry. No numbers are necessary; a one-sentence answer is all that is required.

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Accounting Basics: Explain return-on-assets ratio all state trucking co

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Accounting Basics: Explain return-on-assets ratio all state trucking co

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