Purchase Solution

Return on Assets

Not what you're looking for?

Ask Custom Question

Company has annual sales of $5 million, maintains a net after tax profit margin of 5% and has a sales to assets ratio of 4. What is the return on assets?

If its debt/equity ratio is 0.5, what is the return on equity?

Purchase this Solution
Solution Summary

Return on Assets is discovered.

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Return on assets

    Explain in problem 1 why return on equity was so much higher than return on assets. Return on equity was so much higher than return on assets as equity is less than assets.

  • Calculate Afton's return on assets and return on equity

    assets and return on equity.

  • Return on equity

    ) = Return on assets * Equity multiplier Where Net income / Total assets = Return on assets Total assets / Total equity = Equity multiplier Return on equity = 8%*1.4 = 11.2% Thank you Solution shows calculation of Return on equity.

  • Return on Common Equity vs Total Assets

    142419 Return on Common Equity vs Total Assets Would you anticipate that a firm's Return on Common Equity would be smaller or larger than that same firm's Return on Total Assets?

  • Lily Cosmetics

    = 1.5 Equity Equity = Assets/1.5 = 125/1.5 = 83.33 Return on Equity = 25/83.33 = 30% The solution explains the calculation of return on assets and debt/equity ratio for Lily Cosmetics

  • Thomas Lane Company: calculate return on equity and return on equity ratio

    48269 calculate return on equity and return on equity ratio The Thomas Lane Company has a return-on-assets (investment) ratio of 12 percent. a. If the debt-to-total-assets ratio is 40 percent, what is the return on equity? b.

  • Calculating Rate on Return and Profit Margin

    Return on assets is 12 percent. What is its profit margin (return on sales)?

  • Calculate Clayton's profit margin and debt ratio step by ste

    Sales/total assets 1.5 Return on assets 3% Return on equity 5%

  • Rate of return

    Return on Assets = (Net Income + Interest X (1-tax rate)/Total Assets If we ignore taxes, then Net Income + Interest = Operating Income Return on Assets = Operating Income/Assets Since both companies have the same assets of $2 million and operating

  • Financial statement analysis

    Net income= $90,000 (Given) Return on assets = Net income / Total Assets = 20% (Given) Therefore, Total Assets = Net income / Return on assets= $450,000 =$90,000/20.% c) Total Asset Turnover Sales=

View More Related Solutions