Stroud Sporting Gear Inc has a net profit margin of 6 , a total asset turnover of 2 5, total assets of $250 million, and total equity of $125 million What is the companys return on equity ...

Return on equity net income equity We know that equity is 125 million so we need to ca ...

Stroud Sporting Gear Inc. has a net profit margin of 6%, a total asset turnover of 2.5,

Question:

Stroud Sporting Gear Inc. has a net profit margin of 6%, a total of 2.5, total assets of $250 million, and total equity of $125 million. What is the company’s return on equity?
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.