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ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%

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2007-12-19 07:01:23
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Q: What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?
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Which two ratio are used in DuPont system to create return on assets?

Return on Assets = Profit Margin X Asset Turnover


What is the profit margin if the asset turnover ratio is 3 time and the return on asset is .1?

Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales


Explain how return on assets decline given an increase in net profit margin?

If you look at what Return on Assets is comprised of, Net Profit Margin and the Total Asset Turnover, if the firm is having a very slow turnover, the ROA will be declining if the turnover is greater in magnitude to the NPM.


If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?

Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.


If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?

EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity


What is Return on Assets DuPont?

Return on Assets DuPont is a ratio that shows how the return on assets depends on both asset turnover and profit margin. The DuPont Method or Formula breaks out these two components (asset turnover & profit margin) in order to determine the impact of each on the profitability of the company. This ratio helps to highlight the impact of changes in asset turnover and profit margin.Formula:ROA DuPont = (Net Income/Sales) * (Sales/Total Assets)


A company has an ROA of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent. What is the companys total asset turnover and what is the firm's equity multiplier?

Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05


Doublewide Dealers has an ROA of 10 percent a 2 percent profit margin?

Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05


In the DuPont formula return on assets equals?

Return on Assets DuPont is a ratio that shows how the return on assets depends on both asset turnover and profit margin. The DuPont Method or Formula breaks out these two components (asset turnover & profit margin) in order to determine the impact of each on the profitability of the company. This ratio helps to highlight the impact of changes in asset turnover and profit margin.Formula:ROA DuPont = (Net Income/Sales) * (Sales/Total Assets)


Doublewide Dealers has an ROA of 10 percent a 2 percent profit margin and ROE of 15 percent What is its total assets turnover?

1.5=1.0 x EM 1.5=1.0EM 1.5/1.0EM EM=1.5/1.0=1.5 1.5=0.3TAT ROE=PROFIT MARGIN X TAT X EM TAT=1.5/0.3=5


Inventory turnover ratio affect profit margin?

yes


Needham pharmaceuticals has a profit margin of 3 percent and an equity multiplier of 2.0 its sales are 100 million and it has total assets of 50 million what is its roe?

ROE= profit margin × total assets turnover × equity multiplier ROE= ( Net income / sales ) × ( sales / total assets ) × ( total assets / common equity ) ROE= 3% × ( 100/50)×2 ROE = 3% × 4 = 12 %

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