Question: If ROA increases and profit margin is constant, then which of the following must have increased? ROE. Gross margin ratio. Asset turnover. d.Inventory turnover. e.Debt

If ROA increases and profit margin is constant, then which of the following must have increased?

  1. ROE.
  2. Gross margin ratio.
  3. Asset turnover.

d.Inventory turnover.

e.Debt to assets ratio.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

If ROA increases and profit margin is constant, then which of the following must have increased? ROE. Gross margin ratio. Asset turnover. d.Inventory turnover. e.Debt to assets ratio.

Q:

If ROA increases and profit margin is constant, then which of the following must have increased? ROE. Gross margin ratio. Asset turnover. d.Inventory turnover. e.Debt to assets ratio.

Q:

If ROA increases and profit margin is constant, then which of the following must have increased? ROE. Gross margin ratio. Asset turnover. d.Inventory turnover. e.Debt to assets ratio.

Q:

20. In December 2018, Apple had cash of $86.43 billion, current assets of $140.83 billion, and current liabilities of $108.28 billion. It also had inventories of $4.99 billion. A. What was Apple's...

Q:

I kindly need help with this below project. Please Help? Submission this Sunday August 13, 2017. Your final Excel workbook submission should contain the following. You cannot use any other software...

Q:

I kindly need help with this below project. Please Help? Submission this Sunday August 13, 2017. Your final Excel workbook submission should contain the following. You cannot use any other software...

Q:

EXERCISE "A" IS ANSWERED. Need answers for "B" and "C". Question 1: US REPUBLIC CORPORATION BALANCE SHEET, DECEMBER 31, 20X3 ASSETS Cash Accounts receivable Inventory Fixed assets, net $ 1,000,000...

Q:

1- The Cavo Company has an ROA of 8.9 percent, a profit margin of 8.25 percent, and an ROE of 14.25 percent. What is the companys total asset turnover? (Do not round intermediate calculations and...

Q:

calculate financial ratios Midwest Shocks Financial Ratios Mangament 12/31/19 Forecast 12/30/20 12/31/17 12/31/18 Group Forecast 12/31/20 Profitability Gross Profit Margin Operating Profit Margin Net...

Q:

hwk #4: Ratio Analysis & DuPont Analysis Homework assignment #4 is taken from your textbook as follows: page 87 #15 --prepare BOTH a vertical common size statement AND a horizontal common size...

Q:

Build on the project from Assignment 2. This assignment consists of two (2) sections: MS Project Exercise Project Performance paper You must submit both sections as separate files for the completion...

Q:

Describe the procedure to estimate beta using the newton raphson method with the fisher scoring method?

Q:

This year Andrews achieved an ROE of 1 0 . 9 % . Suppose next year the profit margin ( Net Income / Sales ) des same neat your, what effect would you expect this action to have on Andrews's ROE?...

Q:

Why does corruption have a particular impact on public construction projects?

Q:

Parking lots A and B each charge a set fee for parking plus an hourly rate. Mr. Diaz needs to park his car and realizes that it would cost the same in both lots. For how many hours does Mr. Diaz need...

Q:

Calculate the standard deviation and return of a portfolio consisting of 60% of Security A and 40% of Security B. Assume the correlation coefficient between stock A and stock B is 0.55. Interpret the...

Q:

You are a teacher and you want to assign students to sit at certain tables in the room. There are some students who are disruptive when they sit together, so you want to make sure they are at...

Q:

The following graph shows the labor market for research assistants in the fictional country of Collegia. The equilibrium wage is $10 per hour, and the equilibrium number of research assistants is...

Q:

A pointer holds a memory address.

Q:

Population

Q:

The feeling of boredom.

Q:

2. In this chapter, the reader should reflect on the following concepts: