Question

In: Finance

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).

Solutions

Expert Solution

a. Total asset turnover = ROA / Profit margin = 0.12 / 0.05 = 2.4 times

b. Equity multiplier = ROE / ROA = 0.20 / 0.12 = 1.67 times


Related Solutions

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*****
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 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.
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%...
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.
A company has a return on equity of 14.60 percent and a profit margin of 10...
A company has a return on equity of 14.60 percent and a profit margin of 10 percent. What is the return on assets if the equity multiplier is 1.4?
Computing profit Margin, Turnovers, and Return on investments
Munoz Corporation’s balance sheet indicates that the company has $600,000 invested in operating assets. During Year 2, Munoz earned operating income of $72,000 on $1,200,000 of sales.   Required Compute Munoz’s profit margin for Year 2. Compute Munoz’s turnover for Year 2. Compute Munoz’s return on investment for Year 2.  
Oscar's has a profit margin of 5.6 percent, a return on equity of 18.63 percent, and...
Oscar's has a profit margin of 5.6 percent, a return on equity of 18.63 percent, and an equity multiplier of 1.49. What is the return on assets?
Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented...
Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets ($ millions) January 31, 2015 February 1, 2014 Assets Cash and cash equivalents $2,210 $670 Inventory 8,790 8,278 Other current assets 3,087 2,625 Total current assets 14,087 11,573 Property and equipment, net 25,958 26,412 Other noncurrent assets 1,359 6,568 Total assets $41,404 $44,553 Liabilities and shareholders’ investment Accounts payable $7,759 $7,335 Accrued and other current liabilities 3,886 4,299 Current...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT