Explain why the return-on-assets ratio is so much more

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All State Trucking Co. has the following ratios compared to it industry for 2007:

                                                                           AllState Trucking          Industry

Return on sales                                                         3%                          8%

Return os assets                                                     15%                          10%  

Explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry.  Nu numbers are necessary; a one-sentence answer is all that is required.

Reference no: EM13618248

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