Torrid Romance Publishers has total receivables of $3,000, which represents 20 days' sales. Total assets are $75,000.

Question:

Torrid Romance Publishers has total receivables of $3,000, which represents 20 days' sales. Total assets are $75,000. The firm's operating profit margin is 5%. Find the firm's ROA and asset turnover ratio.

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.