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Hi, I wanted to know if the return of sales ratio was the SAME as the profit margin given above? AND if the investment turnover ratio was the same as Asset turnover? please help and thanks in advance!

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Answer #1

Solution:

Yes, return on sales was same as the profit margin

Return on sales / Profit margin = Profits / Sales

Yes, investment turnover ratio was same as asset turnover

Investment Turnover / Asset turnover = Sales / Total assets

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