Selected financial information gathered from the Matador Corporation follows:
|
|
2007 |
2006 |
2005 |
|
Average debt |
$792,000 |
$800,000 |
$820,000 |
|
Average equity |
$215,000 |
$294,000 |
$364,000 |
|
Return on assets |
5.9% |
6.6% |
7.2% |
|
Quick ratio |
0.3 |
0.5 |
0.6 |
|
Sales |
$1,650,000 |
$1,452,000 |
$1,304,000 |
|
Cost of goods sold |
$1,345,000 |
$1,176,000 |
$1,043,000 |
Using only the data presented, which of the following statements is most correct?
A. Return on equity has improved.
B. Leverage has declined.
C. Gross profit margin has improved.
|
