Assume that a company has a profit margin of 6.0 percent, an asset turnover of 3.2 times,
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Assume that a company has a profit margin of 6.0 percent, an asset turnover of 3.2 times, and a debt to equity ratio of 50 percent. What are the company’s return on assets and return on equity?
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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Profit Margin x Asset Turnover Return on Ass...View the full answer
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