Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 2.50
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Total asset turnover = 2.50
Profit margin = 6.5%
Equity multiplier = 1.10
Payout ratio = 60%
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For
Corporate Finance Core Principles and Applications
ISBN: 978-0077905200
3rd edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
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