Papa’s Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands): Papa’s Pizza Pizza PrinceNet sales $ 24,128 $ 1,835Net income 2,223 129Total assets, beginning 14,998 919Total assets, ending 15,465 1,157Required:1. Calculate the return on assets, profit margin, and asset turnover ratio for Papa’s Pizza.2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince.3. Which company has the higher profit margin and which company has the higher asset turnover?
Papa’s Pizza is the market leader and Pizza Prince is an up-and-coming player in the highly competitive delivery pizza business. The companies reported the following selected financial data ($ in thousands):
Papa’s Pizza Pizza Prince
Net sales $ 24,128 $ 1,835
Net income 2,223 129
Total assets, beginning 14,998 919
Total assets, ending 15,465 1,157
Required:
1. Calculate the return on assets, profit margin, and asset turnover ratio for Papa’s Pizza.
2. Calculate the return on assets, profit margin, and asset turnover ratio for Pizza Prince.
3. Which company has the higher profit margin and which company has the higher asset turnover?
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