Question

Which two ratios when multiplied with each other will yield the return on assets?

Answer 1

Profit margin; Asset turnover are the ratios when multiplied with each other will yield the return on assets.

More about profit margin:

Profit margin is one of the often used profitability measures to assess a company's or line of business's profitability. It shows the percentage of sales that were profitable. Simply put, the percentage figure indicates how much money the business made for every dollar of sales.

One of the often used profitability metrics to gauge a company's or line of business's profitability is profit margin. It displays the proportion of profitable sales. Simply put, the percentage value represents the amount of profit the company generated for each dollar of sales.

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