A company reported net income of $225,000, net sales of $2,500,000, and average total assets of $2,100,000 for the current year. Calculate this company's profit margin, total asset turnover, and return on total assets.
What will be an ideal response?
| Profit margin: $225,000 / $2,500,000 | = | 9% |
| Total asset turnover: $2,500,000 / $2,100,000 | = | 1.19 |
| Return on total assets: $225,000 / $2,100,000 | = | 10.7% |
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