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A company has an ROA of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent. What is the companys total asset turnover and what is the firm's equity multiplier?
Wiki User
∙ 11y ago
Given: ROA = 10%, Profit margin = 2%, ROE = 15%
ROA = Profit margin x Asset Turnover
Therefore,
Asset Turnover = ROA / Profit margin
= 10 / 2 = 5%
ROE = Profit margin x Asset Turnover x Equity multiplier
15 = 2 x 5 x Equity Multiplier
15 / 10 = Equity Multiplier
Equity Multiplier = 1.05
Wiki User
∙ 11y ago
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How do you solve for equity multiplier with ROA 10 percent profit margin 2 percent and ROE 15 percent?
Equity Multiplier ROA*Equity Multiplier=ROE so, (10%)*(x)=(15%), therefore, Equity Multiplier=15%/10%= 1.5 times Total Asset Turnover Profit Margin*Total Asset Turnover = ROA, so (2%)*(x)=10%, therefore Total Asset Turnover=10%/2%= 5 times
What is the multiplier for 70 percent and 20 percent off?
0.7 and 0.2
What is the multiplier that will increase an amount by 15 percent?
N x 1.15
How do you a multiplier to calculate a percentage increase?
percent increase=(new amount-original amount) _____________________ original amount
If a department makes a profit of 30 percent on a turnover of 85000 what percentage profit can be expected if overheads increase by 10000 but other factors remain unchanged?
18%
If a company's return on equity is 10 percent its profit margin is 5 percent and its asset turnover is 1.57 what is it's equity multiplier?
EQUITY MULTIPLIER=Total Assets / Total Stockholders' Equity
If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?
Company's Total Assets Turnover Ratio is 5 and Equity multiplier is 1.5 times which is cal. as Net Sales/Total Assets and Total Assets/ Shareholder's equity resp. for the two ratios.
How do you solve for equity multiplier with ROA 10 percent profit margin 2 percent and ROE 15 percent?
Equity Multiplier ROA*Equity Multiplier=ROE so, (10%)*(x)=(15%), therefore, Equity Multiplier=15%/10%= 1.5 times Total Asset Turnover Profit Margin*Total Asset Turnover = ROA, so (2%)*(x)=10%, therefore Total Asset Turnover=10%/2%= 5 times
Doublewide Dealers has an ROA of 10 percent a 2 percent profit margin?
Given: ROA = 10%, Profit margin = 2%, ROE = 15% ROA = Profit margin x Asset Turnover Therefore, Asset Turnover = ROA / Profit margin = 10 / 2 = 5% ROE = Profit margin x Asset Turnover x Equity multiplier 15 = 2 x 5 x Equity Multiplier 15 / 10 = Equity Multiplier Equity Multiplier = 1.05
How do you find a multiplier?
For a change of p percent, the multiplier is (1+p/100).
What is the multiplier for 70 percent and 20 percent off?
0.7 and 0.2
What is 2.700 percent written as a multiplier?
0.027
What multiplier do you use to find 18 percent?
0.18
What is the asset turnover ratio if the profit margin is 5 percent and the return on assets is 13.5 percent?
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
Needham pharmaceuticals has a profit margin of 3 percent and an equity multiplier of 2.0 its sales are 100 million and it has total assets of 50 million what is its roe?
ROE= profit margin × total assets turnover × equity multiplier ROE= ( Net income / sales ) × ( sales / total assets ) × ( total assets / common equity ) ROE= 3% × ( 100/50)×2 ROE = 3% × 4 = 12 %
What is the multiplier that will increase an amount by 15 percent?
N x 1.15
What is the percent of turnover if you lose 4 of 249 people?
1.61%
