Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 2.35 times. If the

Question:

Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 2.35 times. If the return on assets is 9 percent, what is its profit margin?

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.