No !!
Turnover is the amount of money that is used for the business to trade, profit is the amount of money that is left after the costs of the business have been subtracted from the income from the business.
turnover in general sense means the total revenue derieved by an enterprise from its primary business . however different rules and provisions of various laws and acts define turnover differently . There cannot be any stable definition for turnover .
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
When we speak of margin we are referring to the fact that we are comparing the profit as a fraction of net sales (Turnover). It is usually referred to as the gross profit margin and one must not confuse this with gross profit mark-up which is expressing gross profit as a percentage of the cost price of goods sold. Naturally the average is the result that we achieve when we compare the gross profit for one year with the Turnover of the same year and express it as a percentage.
Return on Assets = Profit Margin X Asset Turnover
yes
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
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
It is same when your revenue increases and at the same time it manages to maintain its profit %. Assuming a company has a turnover of 100 crores and has a running expenditure of 75 crores then profit is 25 crores which is 25%. If the company takes steps to increase its turnover and manages to increase the total turnover the next year to 200 crores and manages to keep its expenditure to 150 crores, this implies that the profit this time around was the same 25% and hence profit maximization happened the same as revenue maximization. But it is seldom the case. In many cases when a company strives to increase either, the other takes a hit.
When we speak of margin we are referring to the fact that we are comparing the profit as a fraction of net sales (Turnover). It is usually referred to as the gross profit margin and one must not confuse this with gross profit mark-up which is expressing gross profit as a percentage of the cost price of goods sold. Naturally the average is the result that we achieve when we compare the gross profit for one year with the Turnover of the same year and express it as a percentage.
Return on Assets = Profit Margin on Sales x Asset Turnover .1 = Profit Margin on Sales x 3 .033 = Profit Margin on Sales
Return on Assets = Profit Margin X Asset Turnover
yes
Cost of sales is the expenses to earn sales so cost of sales and net sales are not same, formula for gross profit is as follows: Gross profit = Sales - Cost of sales
The projected turnover is usually the amount of units expected to be sold over a financial period. It can help a company make profit projections if they factor in the costs of production.
If you look at what Return on Assets is comprised of, Net Profit Margin and the Total Asset Turnover, if the firm is having a very slow turnover, the ROA will be declining if the turnover is greater in magnitude to the NPM.
Gross profit calculation Gross profit = Revenue - Cost of sales
Net Profit is the profit determined by a company after deducting the cost of product plus the cost of carrying the prdt from the gross received amount. While turnover of a company represents the total volume of sales a company does .It includes the cost price of the product plus the profit.
a company turnover is based on the , production loss profit expencess labour cost etc . . .