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%
15-20 percent
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
1.5=1.0 x EM 1.5=1.0EM 1.5/1.0EM EM=1.5/1.0=1.5 1.5=0.3TAT ROE=PROFIT MARGIN X TAT X EM TAT=1.5/0.3=5
According to Chron, the average profit margin for furniture retailers is 2 percent. This is up from other retailers who normally have a 0.5 percent profit margin.
ROA = Net Profit Margin * Asset Turnover Asset Turnover = ROA/Profit Margin = 13.5/5 = 2.7%
then the question is ...
15-20 percent
:D
Profit margin means the amount of profit you make measured in a percentage. This can include:Gross Profit marginNet Profit marginMarkup Profit margin
One percent after taxes
If you buy something for £1 and sell it for £3, then you've made 200% profit. Edit It is impossible to have 200% profit margin It's also impossible to have a 100% profit margin You can have a 200% MARKUP But profit margin formula is 1 - (1 / (1 + (Markup)) So example lets say you buy something for £1 and sell it for £3 then your markup 200% or £2 Your profit margin = 1-(1/1+(£2)) Profit margin = 67%
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
Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost. Add the profit margin (cost*profit%) to the cost.
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue