Question

Syke Under Shield

Answer 1

Answer:

For Skye - 15.85%

For under shield - 5%

Skye is using its asset more efficiently because its ROA is higher

Step-by-step explanation:

Return on total assets =  Net income / Average total assets

For Skye

$3192 /  [(18,764 + 21,512)/2] = 0.1585 = 15.85%

For under shield

$ 649 / [(10,252 + 15,659)/ 2] = 0.05 = 5%

Skye is using its asset more efficiently because its ROA is higher