if company A asset turenover ratio is 0.5 and its operating profit margin is 50% ,company...

Question

Question

if company A asset turenover ratio is 0.5 and its operating profit margin is 50% ,company A return on asset 25% , True or false

business accounting

Answer 1

Answer #1

Return on assets = Profit margin * asset turnover

= (50% * 0.5)

= 25%

Hence its true.

Answer 2

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