Explore BrainMass

Explore BrainMass

    Profit Margin for the Year

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    An analyst finds that, for a firm reporting a return on net operating assets of 19 percent, the asset turnover had declined from 2.2 to 1.9.

    a) Calculate the profit margin for the year.
    b) What does the decrease in the asset turnover tell you about the likelihood of the 19 percent RNOA being maintained in the future?

    © BrainMass Inc. brainmass.com December 15, 2022, 8:17 pm ad1c9bdddf
    https://brainmass.com/business/profit-margin/profit-margin-year-289210

    Solution Summary

    The solution calculates the profit margin and the asset turnover.

    $2.49

    ADVERTISEMENT