The total assets turnover of BBQ is 2.0,
Calculate the
The total asset turnover ratio is the efficiency ratio which is used to measure how much sales is generated by using the firm's total assets.
Return on equity is used to measure the financial performance that owners of the common stock of a company receive on their shareholdings.
Debt ratio is the percentage of total debts divided by total assets which measures the percentage of liabilities of a firm in terms of total assets. A higher ratio indicates that the firm is at risk.
Return on assets is used to measure how profitable a firm is related to the firm's total assets.
Net profit margin is a profitability ratio which is used to measure the percentage of revenue available after deducting operating expenses, interest, and taxes.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
CFIN (with Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
- Needham Pharmaceuticals has a profit margin of 3% and an equity multiplier of 2.0. Its sales are $100 million, and it has total assets of $50 million. What is its ROE?arrow_forwardDTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?arrow_forwardBlue Co. is funded by both debt and equity with a total debt to total asset ratio of 40%. If the firm has a retained earnings breakpoint of P2,450,000, how much is the additions to the retained earnings during the year?arrow_forward
- Green Fire has an equity multiplier of 1.35, a return on assets of 15 percent, a total asset turnover of 1.2, and a ROS of 12.5 percent, and a Debt/Equity Ratio of .35. What is its ROE?arrow_forwardThe Mikado Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .49 and a current ratio of 1.38. Current liabilities are $2,450, sales are $10,630, profit margin is 10 percent, and ROE is 15 percent. What is the amount of the firm’s net fixed assets?arrow_forward(b) Bartley Barstools has an equity multiplier of 3.8, and its assets are financed with some combination of long-term debt and common equity. What is its debt to asset ratio?(c) Doublewide Dealers has a ROA of 12%, a 3% profit margin, and an ROE of 15.5%. What is its total assets turnover? What is its equity multiplier?arrow_forward
- Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decima) places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)arrow_forwardRY Corporation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm’s return on equity?arrow_forward
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT