Below are three relationships that are important to the determination of profitability.Assume assets were $22,900,000 on Dec.31,2008.
REQUIRED:
Compute the operating leverage,financial structure leverage,and ROCE (rounded to two places).Then use these relationships to analyze how the profitability of X-Mart changed over the three year period below.What does the company need to do to reverse this trend? What are the risks of your strategy?

Question

Below are three relationships that are important to the determination of profitability.Assume assets were $22,900,000 on Dec.31,2008.
  REQUIRED:
Compute the operating leverage,financial structure leverage,and ROCE (rounded to two places).Then use these relationships to analyze how the profitability of X-Mart changed over the three year period below.What does the company need to do to reverse this trend? What are the risks of your strategy?

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The Answer of Below are three relationships that are important to the determination of profitability.Assume assets were $22,900,000 on Dec.31,2008.
  REQUIRED:
Compute the operating leverage,financial structure leverage,and ROCE (rounded to two places).Then use these relationships to analyze how the profitability of X-Mart changed over the three year period below.What does the company need to do to reverse this trend? What are the risks of your strategy?

Below Are Three Relationships That Are Important to the Determination