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3 November, 00:36

Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5 percent and its return on assets (investment) is 16.25 percent. What is its assets turnover

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  1. 3 November, 00:40
    0
    The assets turnover is 2.54

    Explanation:

    To calculate the assests turnover we have to use the formula of ROA.

    The ROA = Profit margin * Asset turnover ratio

    Therefore the Asset turnover ratio = ROA / Profit margin

    = 0.165 / 0.065

    = 2.54. Asset turnover ratio
  2. 3 November, 00:41
    0
    Answer: 2.50%

    Explanation:

    Asset turn over ratio = net sales or revenue/average total assets

    Net sales/revenue - - 16.25 percent or 16.25%

    Profit margin/average total asset - - 6.5 percent or 6.5%

    Asset turn over ratio = 16.25/6.5

    = 2.50%
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Home » Business » Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 6.5 percent and its return on assets (investment) is 16.25 percent. What is its assets turnover
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