Question
A company's financial statements show a profit margin of
15% and a return on equity (ROE) of 20%. What is the company's asset turnover ratio assuming financial leverage of 2?Solution
The asset turnover ratio is calculated as revenue divided by total assets. Using the formula for ROE, we can solve for the asset turnover ratio: ROE = Profit margin x Asset turnover ratio x Leverage 20% = 15% x Asset turnover ratio x (Total assets / Shareholder equity) Asset turnover ratio = 20% / (15% x (Total assets / Shareholder equity)) Asset turnover ratio = 20% / (15% x 2) Asset turnover ratio = 0.67
What is the difference of ages of S and Q?
Who likes Blue?
Which of the following Colour does J like?
How many persons sit between the one who works in company R and the one who works in company P, when counted from right of J?
Five teachers, R, S, T, U and V, are sitting in a straight line facing towards north. V is between R and U. T is second to the right of U. R is to the i...
If all the persons are arranged in alphabetical order in the clockwise direction with respect to A, then how many persons remain unchanged in their pos...
How many people live between the floors on which Tanya and the one eating Sandwich live?
- Five persons R, S, T, U and V are sitting in a row facing north. R is sitting third to the right of S. U sits second to the left of R. V sits at one of the...
Who sits fifth to the right of M?
How many persons sit between X and Y, if counted from the right of X?
