An analyst finds that, for a firm reporting a return on net operating assets of 19 percent,

Question:

An analyst finds that, for a firm reporting a return on net operating assets of 19 percent, the had declined from 2.2 to 1.9.
a. Calculate the profit margin for the year.
b. What does the decrease in the tell you about the likelihood of the19 percent RNOA being maintained in the future?

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.