The first question in this vignette asks which of 3 divisions is likely to potentially become less significant in the future.
To evaluate this, the analyst calculates the ratio of CAPEX/total assets.
The correct answer is the division w/ the lowest ratio ( < 1). The other two divisions had ratios > 1.
Why wouldn’t the answer be based on the division that had the greatest percentage decrease in CAPEX/total assets?
The division w/ the lowest ratio had a constant YoY ratio, while the largest division experienced a 6% decrease in the ratio (even thought the ratio remained greater than 1).