Asked by
Skyler Soukup
on Oct 28, 2024
Verified
The return on assets ratio is affected by both the net profit margin ratio and the total asset turnover ratio.
Return on Assets Ratio
A financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficiently assets are being used to produce profit.
Total Asset Turnover
A measure of a company's efficiency in using its assets to generate sales or revenue.
- Recognize the impact of net profit margin ratio and total asset turnover ratio on return on assets.
Verified Answer
CS
Learning Objectives
- Recognize the impact of net profit margin ratio and total asset turnover ratio on return on assets.
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