The return on assets (ROA) model measures: Group of answer choices net profit divided by total...
The return on assets (ROA) model measures:
Group of answer choices
net profit divided by total assets multiplied by the asset turnover
net profit margin times the equity multiplier
net profit margin times asset turnover
revenues divided by net profit times the asset turnover
Homework Answers
Answer) Option c - net profit times asset turnover.
Explanation:This is because the formula of return on assets is represented as a product of profit margin and total assets turnover
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The return on assets (ROA) model measures:
Group of answer choices
net profit divided by total...
Please post answers and indicate: Net income, total asset turnover, equity multiplier, ROA, and ROE You...
Please post answers and indicate: Net income, total asset
turnover, equity multiplier, ROA, and ROE
You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $33 4 mililion, accounts receivable are $4.54 milifion, ACP is 25 days, net income is $4.80 million, and debt-to-equity is 12 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days....
The Cavo Company has an ROA of 10 percent, a profit margin of 12.75 percent, and...
The Cavo Company has an ROA of 10 percent, a profit margin of 12.75 percent, and an ROE of 18.75 percent. What is the company’s total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total asset turnover times What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity multiplier times
The Taylor Company has an ROA of 7.6 percent, a profit margin of 5.2 percent, and...
The Taylor Company has an ROA of 7.6 percent, a profit margin of 5.2 percent, and an ROE of 14 percent. a. What is the company's total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) times a. Total asset turnover b. Equity multiplier times
Return on equity can be calculated as ROA × Equity multiplier. What is another way to...
Return on equity can be calculated as ROA × Equity multiplier. What is another way to express this equation? a)ROE = ROA × (1 + Debt − Equity Ratio) b)ROE = ROA × Profit Margin c)ROE = ROA × Total asset Turnover d)ROE = ROA × (1 − Equity multiplier) e) ROE = ROA × Operating efficiency
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000...
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Gardial & Son has an ROA of 8% , a 6 % profit margin, and a return on equity equal to 10 % 1. What is the company's...
Gardial & Son has an ROA of 8% , a 6 % profit margin, and a return on equity equal to 10 % 1. What is the company's total assets turnover? Round your answer to two decimal places 2. What is the firm's equity multiplier? Round your answer to two decimal places.
1.What is the return on assets (ROA) for a firm that has a debt ratio of...
1.What is the return on assets (ROA) for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of $740,000, and a total asset turnover of 4? 2. Thompson Corp has a NPM of 11.5%. They reported earnings after tax of $632,500. If they had net fixed assets of $1,500,000 and current assets of $750,000, what are their total asset turnover ratios?
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net...
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net...
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
a. Compute the return on assets (ROA) for 2018 and 2017. Round answers to one decimal...
a. Compute the return on assets (ROA) for 2018 and 2017. Round
answers to one decimal place (ex: 0.2345 = 23.5%).
b. Compute the profit margin (PM) for 2018 and 2017.
Round answers to one decimal place (ex: 0.2345 = 23.5%).
c. Compute the asset turnover (AT) for 2018 and 2017.
Round answers to two decimal places.
d. Which component of ROA (profit margin or asset turnover or
both) drives the change in ROA in 2018?
e. Compute the return...
Please post answers and indicate: Net income, total asset
turnover, equity multiplier, ROA, and ROE
You are considering investing in Dakota's Security Services. You have been able to locate the following information on the firm: Total assets are $33 4 mililion, accounts receivable are $4.54 milifion, ACP is 25 days, net income is $4.80 million, and debt-to-equity is 12 times. All sales are on credit. Dakota's is considering loosening its credit policy such that ACP will increase to 30 days....
The Taylor Company has an ROA of 7.6 percent, a profit margin of 5.2 percent, and an ROE of 14 percent. a. What is the company's total asset turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) times a. Total asset turnover b. Equity multiplier times
Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...
Gardial & Son has an ROA of 8% , a 6 % profit margin, and a return on equity equal to 10 % 1. What is the company's total assets turnover? Round your answer to two decimal places 2. What is the firm's equity multiplier? Round your answer to two decimal places.
Exercise 14-11 The following selected information is for Macaron Corporation: Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $353,000 134,500 501,000 365,000 33,400 2017 $281,000 100,000 402,000 287,000 29,700 2016 $272,000 51,500 302,000 185,000 20,300 Macaron had no preferred shares. x Your answer is incorrect. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return on common shareholders' equity ratios for 2018 and 2017. 2.6. Round asset turnover...
the DuPont formula relates return on equit
The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...
a. Compute the return on assets (ROA) for 2018 and 2017. Round
answers to one decimal place (ex: 0.2345 = 23.5%).
b. Compute the profit margin (PM) for 2018 and 2017.
Round answers to one decimal place (ex: 0.2345 = 23.5%).
c. Compute the asset turnover (AT) for 2018 and 2017.
Round answers to two decimal places.
d. Which component of ROA (profit margin or asset turnover or
both) drives the change in ROA in 2018?
e. Compute the return...
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