A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total as

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A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total as

set turnover were respectively?

Business

1 answer:

kvasek [131] · Answer 1 · 2023-10-27T21:19:32+03:00

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. The profit margin and total asset turnover ratio are 13.3% each. 1.5.

There are two methods that can be used to calculate return on assets. The first method is to divide the company's net income by its average total assets. The second method is to multiply the company's net profit margin by sales.

Return on assets is calculated by dividing a company's after-tax earnings by total assets. The balance sheet total corresponds to the company's total equity and liabilities. This value can be found on the company's balance sheet.

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