Question
In: Finance
A firm has an ROI of 10%, turnover of 5X, and sales of $10,000,000. What is...
A firm has an ROI of 10%, turnover of 5X, and sales of $10,000,000. What is the firm’s operating margin % generated during the year?
Display your answer using the following format only: 12 (do not use a percentage sign or any decimal points in your answer)
Solutions
Expert Solution
Assets turnover = Net sales / total assets
5 = $10,000,000 / total assets
Total assets = $10,000,000 / 5
Total assets = $2,000,000
Net income = ROI * total assets
= 0.10 * $2,000,000
= $200,000
Operating margin% = Net income / sales
= $200,000 / $10,000,000 = 2 (0.02 * 100)
OPERATING MARGIN% = 2
jeff jeffy answered 2 years agoRelated Solutions
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Problem: Return on Investment, margin, and turnover
Return on
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The manager of an
investment center should be evaluated based on revenues, costs, and
investments. An evaluation based on net income ignores the amount
of investment the investment center required. One way to measure
operating profit in relation to investment is a calculation called
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I have the formulas for how to calculate ROI, Margin and Turnover. But I don't know...
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Ready Electronics is facing stiff...
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selling for 102% of the par; the bonds make semi-annual
payments.
Preferred Shares: 25,000 shares of $50
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A
B
C
D
Revenue
$12,500
$49,000
$96,000
$fill in the blank 1
Expenses
$10,000
$fill...
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Assuming that the company adopts this change, succeeds in reducing
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