Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE of 20%....

Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE of 20%.

What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places.

What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Solutions

Expert Solution

ROA=Net income/Total assets

Net income=0.07*Total assets

Profit margin=Net income/Sales

Net income=0.06*Sales

ROE=Net income/Equity

Net income=0.2*Equity

Total asset turnover=Sales/Total assets

=(Net income/0.06)/(Net income/0.07)

=1.17(Approx)

Equity multiplier=Total assets/equity

=(Net income/0.07)/(Net income/0.2)

=2.86 (Approx)

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

DuPONT ANALYSIS Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE...

DuPONT ANALYSIS Henderson's Hardware has an ROA of 7%, a 6% profit margin, and an ROE of 16%. What is its total assets turnover? Round your answer to two decimal places. What is its equity multiplier? Round your answer to two decimal places.

Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 20%....

Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 20%. What is its total assets turnover? Do not round intermediate calculations. Round your answer to two decimal places. What is its equity multiplier? Do not round intermediate calculations. Round your answer to two decimal places.

Henderson's Hardware has an ROA of 12%, a 8% profit margin, and an ROE of 17%....

Henderson's Hardware has an ROA of 12%, a 8% profit margin, and an ROE of 17%. a.) What is its total assets turnover? Round your answer to two decimal places. b.) What is its equity multiplier? Round your answer to two decimal places. **** PLEASE. LABEL BOTH ANSWERS CLEARLY*****

Company has an ROA of 8.4 percent, a profit margin of 9.50 percent, and an ROE...

Company has an ROA of 8.4 percent, a profit margin of 9.50 percent, and an ROE of 15.50 percent. Requirement 1: What is the company’s total asset turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Total asset turnover times Requirement 2: What is the equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Equity multiplier times

A firm has an ROA of 15%, profit margin of 3% and ROE of 30%. What...

A firm has an ROA of 15%, profit margin of 3% and ROE of 30%. What is its liability to total asset ratio? 50% 60% 70% 20% A firm has an ROA of 15%, profit margin of 3% and ROE of 25%. What is its liability to total asset ratio? 59.88% 60.05% 40.00% 20.16% A firm has an ROA of 15%, profit margin of 3% and ROE of 25%. What is its liability to total asset ratio? 59.88% 60.05% 40.00%...

If Sales= $18M, TA=14.5M, TD=2.3M, Profit Margin=8%, then what is the Net income? ROA? ROE?

Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on...

Gardial & Son has an ROA of 12%, a 5% profit margin, and a return on equity equal to 20%. What is the company's total assets turnover? What is the firm's equity multiplier? (Please show steps and you may use a financial calculator formula as well).

Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset...

Return on Equity (ROE)= Sales Margin* Asset turnover* Gearing ratio ROE= Profit/equity Sales Margin= Profit/Sales Asset turnover= Sales/Assets Gearing Ratio= Assets/Equity This formula is important from strategy point of view as higher ROE is possible in a low profit margin business by increasing the asset turnover and by taking debt to increase the capital employed. This Question I need it to answer ---> "good very high level summary of the ratios in this DQ. Can you provide back to me...

Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity...

Calculate ROE given the following information: profit margin = 20%; total asset turnover = 0.64; equity multiplier = 1.50.

Carter, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin...

Carter, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin of 4.30 percent, and a total asset turnover ratio of 2.79 times. Its peer group also has an ROE of 23.1 percent but has out performed Carter with a profit margin of 5.16 percent and a total assets turnover ratio of 3 times. Calculate the Carter's equity multiplier and peer group equity multiplier. (Round answers to 2 decimal places, e.g.12.55.)

Subjects