Question

The Petry Co. has a sales of $575,000, a net profit margin of 12%, a ROE of 14.5%, and an equity multiplier of 2, Find the total asset turnover for the Petry Corporation​

Answer 1

Explanation:

Profit margins are perhaps one of the simplest and most widely used financial ratios in corporate finance. A company's profit is calculated at three levels on its income statement, starting with the most basic – gross profit – and building up to the most comprehensive – net profit. Between these two lies operating profit. All three have corresponding profit margins calculated by dividing the profit figure by revenue and multiplying by 100.