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Total asset turnover ratio = total sales / total assets

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Total asset turnover ratio = total sales / total assets

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ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%

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Formula for asset turnover:

Asset turnover = net sales / total assets

Net sales = 32000 * 3.2 = 102400

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Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.

Formula:

Asset Turnover = Sales / Average Total Assets

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