Asked by Ja'Nayla Watts on Jun 28, 2024
Verified
A company reported net income of $275,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.
Return on Total Assets
A financial ratio that measures the effectiveness of a company in generating profit from its overall assets, calculated by dividing net income by total assets.
- Calculate and grasp the implications of profit margin, total asset turnover, and return on total assets among diverse companies and over different years.
Verified Answer
ZK
Learning Objectives
- Calculate and grasp the implications of profit margin, total asset turnover, and return on total assets among diverse companies and over different years.