A decomposition of ROE for Company A and Company B is as fol…
A decomposition of ROE for Company A and Company B is as follows: Company A Company B FY25 FY24 FY25 FY24 ROE 26.46% 18.90% 26.33% 18.90% Tax burden 0.7 0.75 0.75 0.75 Interest burden 0.9 0.9 0.9 0.9 EBIT margin 7.00% 10.00% 13.00% 10.00% Asset turnover 1.5 1.4 1.5 1.4 Leverage 4 2 2 2 An analyst is most likely to conclude that: