Which company is doing better,
company A or B, and why, for the past year? Explain/support your answer.


Company A has $100 million in Sales
Revenue and has $2 million in Net Income (after all taxes and expenses) for the
past year.


Company B has $10 million in Sales
Revenue and has $1 million in Net Income (after all taxes and expenses)
for the past year.


They have identical Assets,
Liabilities and Shareholder's Equity. Assume they are in the same
industry and same region of the country.

Company B. They had 90% less sales than Company A and made 50% of what Company A made. Company B obviously had less operating expenses

From the data provided one company has a lower return on investment