Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 1.40

Question:

Assuming the following ratios are constant, what is the sustainable growth rate?

Profit margin = 7.6%

Equity multiplier = 1.50

Payout ratio = 40%

Ratios and Fixed Assets. The Le Bleu Company has a ratio of long-term debt to total assets of 0.70 and a current ratio of 1.20. Current liabilities are $850, sales are $4,310, profit margin is 9.5 percent, and ROE is 21.5 percent. What is the amount of the firm's net fixed assets?

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.